The Composite Balance of Individual Accounts in the Accounts Payable

question 118

Multiple Choice

The composite balance of individual accounts in the accounts payable subsidiary ledger must

• A) equal the composite balance of the individual accounts in the accounts receivable subsidiary ledger.
• B) always be zero.
• C) equal the balance of the accounts payable account in the general ledger.
• D) agree with the total of the Accounts payable column in the cash receipt journal.

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Definitions:

Least Costly

Refers to the option that requires the smallest amount of expense or effort to achieve a given outcome.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to efficient outcomes.

Profit-Maximizing Condition

The state in which a firm's marginal cost is equal to its marginal revenue, aiming to achieve the highest possible profit.

Marginal Revenue Product

The increased earnings from adding one more unit of a resource used in production, such as capital or labor.