For Each Transaction Provided, Choose the Appropriate Account from the List

question 43

Multiple Choice

For each transaction provided, choose the appropriate account from the list that would receive a debit entry as a result of the transaction. (Choices may be used more than once.)
-paying salaries to employees

• A)Cash
• B)Accounts Receivable
• C)Supplies
• D)Prepaid Insurance
• E)Land
• F)Equipment
• G)Accounts Payable
• H)Unearned Revenues
• I)Notes Payable
• J)Common Shares
• K)Retained Earnings
• L)Service Revenue
• M)Salary Expense
• N)Insurance Expense
• O)Utilities Expense
• P)Dividends

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Definitions:

Total Costs

The aggregate amount of spending involved in generating goods or services, factoring in both stable and changeable costs.

Variable Costs

Variable costs are expenses that vary directly with the level of production or sales volume, such as materials and labor.

ATC Curve

Represents the average total cost of production, calculated by dividing the total cost by the quantity of output produced, depicted graphically.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service; it is an important concept in economics for understanding how to optimize production levels.