Refer to the Above Data

question 57

Multiple Choice

Refer to the above data. The entry to close Depreciation Expense account will:

• A) Produce a zero balance in that account when posted.
• B) Include a credit to Income Summary.
• C) Include a debit to Depreciation Expense.
• D) Include a credit to Share Capital.

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Definitions:

Diminishing Marginal Returns

A principle in economics where increasing one factor of production, while keeping others constant, will yield lower additional output.

Price Ceiling

A legal maximum price that can be charged for a good or service, typically set by government to protect consumers.

Demand Curve

An image that graphically shows the relationship between an item's selling price and the quantities that consumers are interested in buying.

Consumer Surplus

The economic benefit consumers receive when they pay less for a product or service than what they were willing to pay.