A T-Account Has a $1,250 Credit Balance

question 4

Multiple Choice

A T-account has a $1,250 credit balance. This account is most likely:

• A)an expense.
• B)a dividend account.
• C)an asset.
• D)a stock account.

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Definitions:

Fixed Costs

Costs that remain constant regardless of a company's level of activity, including expenses like lease payments, wages, and premiums.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and the business has "broken even."

Sales Dollars

A term used to represent the total value, in monetary terms, of all sales transactions within a specified period.

Variable Costs

Operating expenses that fluctuate based on business operations.