Power Plants with the Lowest Operating Costs Tend to

question 3

Multiple Choice

Power plants with the lowest operating costs tend to

• A)have the lowest fixed costs in terms of construction.
• B)have the highest fixed costs in terms of construction.
• C)operate on the smallest scale of energy production.
• D)generate the cleanest energy.

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Definitions:

Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders.

Note Payable

An obligation in the form of a promissory note, which requires the borrower to pay back the loan or debt to the lender at a future date.

General Journal

The primary accounting record used to record all types of transactions not assigned to other journals.

Equipment

Tangible property that is used in the operations of a business and has a useful life of more than one year.