The Cash Account Has a Beginning Balance of $500

question 37

Multiple Choice

The Cash account has a beginning balance of $500. There are three additional debits totalling $1 250. In addition, there are four credits totalling $775. What is the balance in the account?

• A)$ 1 750
• B)$ 2 525
• C)$ 1 275
• D)$ 975

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Definitions:

Job Costing Approach

A system used to assign manufacturing costs to an individual product or batches of products, commonly used in industries where products are distinct like construction or custom manufacturing.

Selling Price Per Unit

The amount charged to the customer for a single unit of product or service.

Contribution Margin

A financial metric that represents the difference between a company's sales revenue and variable costs, used to cover fixed costs and profits.

Fixed Costs

Costs that do not fluctuate with the level of production or sales within a certain range, such as rent, salaries, and insurance premiums.