The Process of Transferring Revenue and Expense Accounts to the Profit

question 24

Multiple Choice

The process of transferring revenue and expense accounts to the profit and loss account, and then transferring the balance of the profit and loss account and drawing account to the capital account is:

• A)creating the trial balance.
• B)creating the profit and loss statement.
• C)balancing the accounts.
• D)closing off the accounts.

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Definitions:

Cars

Motor vehicles designed primarily for passenger transportation.

Long-Run Marginal Cost Curve

An economic graph showing the change in total cost that comes from producing one additional item when input prices are variable and all inputs are considered.

Price of Labor

The price of labor refers to the wage rate paid to workers for their labor services in the market.

Production Function

A mathematical model demonstrating the relationship between inputs (factors of production) and outputs (goods or services), showing how different quantities of inputs affect the level of output.