Temporary Accounts Are for Recording

question 24

Multiple Choice

Temporary accounts are for recording

• A)revenues and expenses.
• B)assets.
• C)liabilities.
• D)shareholders' equity.
• E)assets, liabilities, and shareholders' equity.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.

Marginal Cost

The added expense incurred by creating one more unit of a product or service.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.

Minimum

The lowest permissible limit or the least possible amount or degree of something.