The Division of Labor

question 40

Multiple Choice

The division of labor

• A)allows more people to be employed
• B)allows tasks to be performed more efficiently
• C)makes people happier on the job
• D)means that less management is required
• E)means that less equipment will be used

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Definitions:

Expense Account(s)

Accounts used to record expenses in the general ledger, which represent the costs of operating a business that are not directly tied to the production of goods or services.

Income Summary

An account used in the closing process, summarizing all revenues and expenses for a period, to transfer the net result to capital accounts.

Capital Account

A capital account is an account on a company's balance sheet that represents the equity investment of owners and shareholders.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent equity account.