A Column in Journals and Ledger Accounts That Is Used

question 7

Multiple Choice

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:

• A) Debit column.
• B) Credit column.
• C) Account balance column.
• D) Description column.
• E) Posting reference column.

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Definitions:

Economic Profit

The difference between the total revenue generated by a business and the total costs, both explicit and implicit.

Total Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, over a certain period of time.

Profit-Maximizing

The process or strategy of adjusting production and operations to generate the highest possible profit.

Total Profit

Total profit is the financial gain made by a business after subtracting all expenses from the total revenue generated from sales and other sources.