The Balance of an Account

question 106

Multiple Choice

The balance of an account:

• A) must be determined after each transaction.
• B) is entered on the debit side if the total debits to the account exceed the total credits to the account.
• C) is put on the top of the T account next to the account name.
• D) can be determined from the journal.

---

Definitions:

Diseconomies of Scale

A situation where a business's cost per unit increases as it produces more items, due to inefficiencies that arise with scaling up production.

Plant Size

Refers to the physical capacity or output level of a manufacturing or production facility.

Output Levels

The quantity of goods or services produced by a company, sector, or economy in a given period of time.

Long Run

A period in economics where all factors of production and costs are variable, allowing full adjustment to any change in economic conditions.