In the Preparation of the Adjusted Trial Balance

question 115

Multiple Choice

In the preparation of the adjusted trial balance:

• A) the trial balance data comes from the journal.
• B) four columns are needed for the adjustments.
• C) the adjusted trial balance columns give the final account balances.
• D) the debits to not have to equal the credits.

---

Definitions:

Average-Variable-Cost

The total variable cost divided by the quantity of output produced.

Marginal Costs

The investment required to manufacture an incremental unit of a product or service.

Variable Costs

Costs that change in proportion to the level of activity or production volume.

Fixed Costs

Costs that do not change with the level of output produced by the firm, such as rent, salaries, or loan repayments.