In Preparing Adjustments on the Work Sheet,which of the Following

question 19

Multiple Choice

In preparing adjustments on the work sheet,which of the following accounts most likely would be added to the Account Name column?

• A)Telephone Expense
• B)Owner's Capital
• C)Property Taxes Payable
• D)Accumulated Depreciation-Buildings

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Definitions:

Variable Expenses

Expenses that change in proportion to the level of activity or volume, such as raw material costs or utility expenses.

Selling Price

The amount for which a product is sold to the customer, generally set above the cost to include a profit margin.

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point, measured in either units or revenue.

Break-Even Point

The quantity of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.