After All of the Account Balances Have Been Extended to the Balance

question 35

Multiple Choice

After all of the account balances have been extended to the Balance Sheet columns of the , the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that

• A)neither net income or loss can be calculated because it is found on the income statement
• B)the company has a net loss of $3,415 for the period
• C)the company has a net income of $3,415 for the period
• D)the amounts are out of balance and need to be corrected

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Definitions:

Cost Curves

Graphs that show the relationship between the cost of producing a good or service and the output level.

Short-Run Supply Curve

A graphical representation showing the quantity of goods a firm is willing and able to supply at different prices in the short term.

MC Curve

Short for Marginal Cost Curve, it graphs the cost to produce one additional unit of a good or service against the quantity produced.

Purely Competitive

Refers to a market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.