The Balance of an Account Is Determined by

question 115

Multiple Choice

The balance of an account is determined by

• A) adding all of the debits to all of the credits
• B) always subtracting the debits from the credits
• C) always subtracting the credits from the debits
• D) adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum

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Definitions:

Units of X

A measure or quantity of something, especially as a standard for measurement of the same items.

Income

The money received by an individual or business in exchange for labor, services, or investment, constituting the financial gain derived from various sources over a period of time.

Budget Line

A graphical representation of all possible combinations of two goods or services that a consumer can purchase at given prices within his or her budget constraint.

Commodity 1

A basic good used in commerce that is interchangeable with other goods of the same type.