In the fiRst Month of Operations, the Total of the Debit

question 94

Multiple Choice

In the first month of operations, the total of the debit entries to the cash account amounted to $1,900 and the total of the credit entries to the cash account amounted to $1,500. The cash account has a

• A) $500 credit balance.
• B) $900 debit balance.
• C) $400 debit balance.
• D) $400 credit balance.

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Definitions:

Nominal Wages

Wages expressed in current dollars, without adjustment for inflation or changes in the cost of living.

Price Level

A collective average of prices for goods and services across the board in the economy.

Real Wages

The purchasing power of wages or salaries, adjusted for inflation, reflecting the actual goods and services that can be bought.

Real Annual Wage

The annual income of an individual adjusted for inflation, providing a more accurate measure of purchasing power over time compared to nominal wages.