Which of the Letters Below Represent the Quantities of Profit

question 76

Multiple Choice

Which of the letters below represent the quantities of profit maximization, productive efficiency, and allocative efficiency?

• A)B = profit maximization; C = productive efficiency; D = allocative efficiency
• B)B = profit maximization; D = productive efficiency; C = allocative efficiency
• C)D = profit maximization; C = productive efficiency; B = allocative efficiency
• D)A = profit maximization; C = productive efficiency; B = allocative efficiency
• E)A = profit maximization; B = productive efficiency; C = allocative efficiency

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Definitions:

Nominal Accounts

Accounts that are used in accounting to record expenses, incomes, losses, and gains; these accounts are closed at the end of the accounting period.

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts.

Debited

An accounting term indicating that an amount has been recorded on the left side of a ledger or account, increasing assets or decreasing liabilities and equity.

Rent Expense

An expense account that records the cost incurred by a business to rent a property or equipment for its operations.