Princeton Financial Services, Inc

question 142

Multiple Choice

Princeton Financial Services, Inc. purchased computers that are to be used in its consulting services. Based on the matching principle, what account, other than Computers, should appear on the balance sheet as of December 31, 2018?

• A) Depreciation Expense - Equipment
• B) Service Revenue
• C) Accumulated Depreciation - Equipment
• D) Equipment Expense

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Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and homogeneous products.

Units of Labor

A measurement in economics indicating the quantifiable effort or work provided by labor forces, often used to determine productivity or cost in production processes.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factories, machinery and equipment used to produce goods.

Profit-Maximizing Amounts

The levels of output or operation at which a business achieves the highest possible profit, determined by analyzing costs and revenues.