The Adage,"There Is No Such Thing as a Free Lunch

question 12

Multiple Choice

The adage,"There is no such thing as a free lunch," is used to illustrate the principle that

• A)goods are scarce.
• B)people face tradeoffs.
• C)income must be earned.
• D)households face many decisions.

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Definitions:

Deposit In Transit

Funds that have been sent to a bank but have not yet been processed and added to the account balance.

Note Collected

The action of receiving payment or settling a promissory note, where one party pays the amount owed to another.

Bank Service Charges

Fees charged by a bank for the handling of accounts, provision of services, or the execution of transactions.

Journal Entries

The basic method of recording financial transactions in the accounts of a business using a double-entry bookkeeping system.