In Economics,capital Refers to

question 253

Multiple Choice

In economics,capital refers to

• A)the finances necessary for firms to produce their products.
• B)buildings and machines used in the production process.
• C)the money households use to purchase firms' output.
• D)goods, but not to services.

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Definitions:

Expense Accounts

Accounts used in accounting to record all expenses transactions made by a business.

Abbreviations

Shortened forms of words or phrases used for convenience.

Debit

An entry on the left side of an account record, used to increase an asset or expense or decrease a liability, equity, or revenue.

Credit

An accounting entry that increases the balance of liabilities and equity accounts, and decreases the balance of an asset or expense account.