Making "How Much" Decisions Involve

question 223

Multiple Choice

Making "how much" decisions involve

• A) calculating the total benefits of the activity and determining if you are satisfied with that amount.
• B) calculating the total costs of the activity and determining if you can afford to incur that expenditure.
• C) calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity.
• D) determining the additional benefits and the additional costs of that activity.

Recognize the categorization and reporting of various financial statement elements in the work sheet and their effect on the balance sheet and income statement.

Identify the function and impact of adjusting and closing entries on the financial statements.

Distinguish between temporary and permanent accounts and their roles in the accounting cycle.

Understand the purpose and process of preparing reversing entries and their impact on recordkeeping.