Which of the Following Would Not Be Included in the Cost

question 207

Multiple Choice

Which of the following would not be included in the cost of land?

• A) Grading the land
• B) Sewer assessment from local government
• C) Cost of making a driveway
• D) Commission to real estate agent

Recognize and describe the purposes and processes of closing entries in accounting.

Calculate ending capital based on given financial information.

Identify the steps in the process of closing income statement accounts.

Understand the effects of omitting or incorrectly recording closing entries.

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Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs, indicating a return above the firm's opportunity costs.

Average Rate

The mean value of a set of rates or percentages, calculated as the sum of all rates divided by the number of rates.

Above Average Profits

Earnings that surpass the norm or average level within a particular industry or market.

Perfectly Elastic Demand

A market situation where demand for a product can drastically change to infinity with the slightest change in its price.