Match Each of the Following Terms with the Appropriate Definitions

question 221

Multiple Choice

Match each of the following terms with the appropriate definitions.
-The party who signs a note and promises to pay it at maturity.

• A)Expense recognition (matching) principle
• B)Realizable value
• C)Interest
• D)Bad debts
• E)Accounts receivable
• F)Aging of accounts receivable
• G)Allowance for doubtful accounts
• H)Promissory note
• I)Payee of a note
• J)Maker of a note

Understand the phases of the business cycle and their characteristics.

Differentiate between true and false statements regarding unemployment benefits and the labor force.

Recognize causes and features of economic recessions and recoveries.

Understand the fundamental concepts and differences between process cost systems and job order cost systems.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a good or service.

Opportunity Cost

Opportunity cost represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Marginal Product

Describes the additional output that is produced by using one more unit of a factor of production, holding all other factors constant.

Marginal Cost

The supplementary cost that arises when one additional unit of a product or service is produced.