If a Business Is Considering the Option of Processing Its

question 77

Multiple Choice

If a business is considering the option of processing its product further,it ignores the ________.

• A) additional costs necessary to process further
• B) additional revenue that can be earned if processed further
• C) cost that is required to produce the basic product before processing further
• D) fact that additional processing will produce any environmental toxins

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Definitions:

Double-Entry Bookkeeping System

Bookkeeping system that has two notable characteristics: each transaction is recorded in two accounts and each account has two columns. In this system, two entries are made for each transaction: one entry as a debit in an account and one entry as a credit in another account.

Trial Balance

(1) Bookkeeping strategy to confirm accuracy in debits and credits in ledger; (2) A balance sheet reports the assets, liabilities, and stockholders’ equity of a business enterprise at a specific date.

Garbage In, Garbage Out

A principle in computing and data analysis that emphasizes the importance of quality input data to produce meaningful output or results.

Trial Balance

An accounting report that lists the balances of all ledgers in two columns (debits and credits) to ensure they are equal.