Generally, the Opportunity Cost and the Money Cost of a Good

question 149

Multiple Choice

Generally, the opportunity cost and the money cost of a good

• A)are identical only if the good sells in a free market.
• B)are different.
• C)matter only to the purchaser of the good.
• D)are not reflected in its price.

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Definitions:

Accounts Payable Subsidiary Ledger

The subsidiary ledger containing the individual accounts with creditors (suppliers).

Cash Payments Journal

A business ledger that documents every cash expenditure or payment conducted by a company.

Purchases Journal

A purchases journal is a special journal used in accounting to record all purchases of merchandise, supplies, or other assets on credit.

Horizontal Analysis

Financial analysis that compares an item in a current statement with the same item in prior statements.