A Record Showing the Activity and the Balances Owed by Each

question 106

Multiple Choice

A record showing the activity and the balances owed by each customer is called the:

• A) accounts payable journal.
• B) sales journal.
• C) bank journal.
• D) accounts receivable subsidiary ledger.

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Definitions:

Existing Capacity

The current maximum level of output that a company can achieve with its available resources, such as facilities, equipment, and workforce.

Variable Selling Expense

Costs incurred from selling a product that vary directly with the number of units sold, such as commissions and shipping costs.

Specialized Machine

Equipment designed for a specific manufacturing process or product, often custom-made and representing a significant fixed cost.

Contribution Margin

The amount of revenue remaining after deducting the variable costs, indicating the contribution towards the fixed costs and profits.