A Lighthouse That Serves a Dangerous Coastal Area Is Built

question 31

Multiple Choice

A lighthouse that serves a dangerous coastal area is built. The lighthouse cost $500,000 to build and serves 500 ships a month. If the shipping in the area increases so that 750 ships pass by a month, the increase in additional costs of providing the light to these new ships is

• A) $500,000.
• B) $250,000.
• C) $250.
• D) $0.

---

Definitions:

Journal Entry

A record in accounting that notes every transaction with debits and credits in the financial books.

Cash Conveyed

The transfer of cash from one party to another, often used in the context of financial transactions or payments.

Beneficiary

An individual or entity entitled to benefits or proceeds from an insurance policy, will, or trust.

Journal Entry

An individual record in an accounting journal that documents a specific financial transaction.