TrebleTip Corp

question 40

Multiple Choice

TrebleTip Corp., a producer of musical instruments, decides to start manufacturing personal computers that are compatible with its amplifiers and effects processors. This change by TrebleTip is a(n) _____.

• A) shallow change
• B) incremental change
• C) first-order change
• D) second-order change

---

Definitions:

Account Balances

The amount of money in an account at a specific point in time, reflecting all transactions.

Credits

An accounting entry that either decreases assets or increases liabilities and equity on the company's balance sheet.

Debits

An entry recorded on the left side of a double-entry bookkeeping system that increases asset and expense accounts, and decreases liability, equity, and revenue accounts.

Journal

A chronological record of all the financial transactions of a business, used for the process of accounting.