Factors of Production Are Grouped into Four Categories

question 270

Multiple Choice

Factors of production are grouped into four categories

• A) land, labor, capital, entrepreneurship.
• B) land, labor, capital, money.
• C) land, capital, money, entrepreneurship.
• D) labor, capital, money, entrepreneurship.

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Definitions:

Expense Accounts

Accounts used to record business expenses, which reduce net income in the profit and loss statement.

Income Summary

An account used in the closing process that summarizes revenues and expenses to determine the net income or loss for a period.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, recorded on the left-hand side.

Utilities Expense

Utilities Expense refers to the cost incurred from the consumption of utilities services like electricity, water, and gas in the course of business operations.