The Need to Make Choices Is Most Closely Related to the Economic

question 121

Multiple Choice

The need to make choices is most closely related to the economic concept of

• A) opportunity cost.
• B) efficiency.
• C) inefficiency.
• D) utility.
• E) disutility.

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Definitions:

Normal Balance

The side of an account, either debit or credit, where increases in the account are recorded.

Net Book Value

The value of an asset after accounting for depreciation or amortization, representing its carrying value on the balance sheet.

Adjusting Journal Entry

An accounting entry made in the books at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Supplies Account

An account used to track the cost of supplies consumed by a business during an accounting period.