Refer to Table 5

question 89

Multiple Choice

Refer to Table 5.15 to answer this question.Suppose that the price of an apple is $2 and the price of a banana is $1 and this consumer has $8 to spend.In order to maximize her total utility,how many of each should she purchase?

• A)1 apple and 6 bananas.
• B)2 apples and 4 bananas.
• C)3 apples and 2 bananas.
• D)4 apples.
• E)8 bananas.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for errors, accruals, and deferrals in the accounting period.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, helping to prepare the books for the next period.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse certain adjusting entries made in the previous period.

T-Accounts

A graphic representation of a general ledger account that outlines the debit and credit sides to visualize the effect of transactions on the account.