If a Decision Must Be Made to Close a Warehouse

question 99

Multiple Choice

If a decision must be made to close a warehouse, non-refundable prepaid rent on the warehouse is

• A)a sunk cost.
• B)a common cost.
• C)an opportunity cost.
• D)a variable cost.

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Definitions:

Ledger

A collection of accounts in which the transactions of a business are categorized and recorded, serving as the main accounting record.

Account

A record that keeps track of financial transactions of a specific type or for a specific purpose within an organization.

General Ledger

A comprehensive record of all financial transactions that occur within a company, serving as the primary data source for the financial statements.

Financial Statements

Structured reports that detail the financial activities and conditions of a business, including balance sheet, income statement, and cash flow statement.