You Drive to Work Each Day

question 39

Multiple Choice

You drive to work each day.The best example of an internal cost is the:

• A) amount of pollution emitted by your car.
• B) congestion created by your car being on the road.
• C) amount the government paid to build the road.
• D) amount you pay to maintain your car.
• E) amount of money you save each day by avoiding the toll roads.

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Definitions:

Credit Balance

An accounting term that signifies a positive balance in a liability, revenue, or equity account, which increases on the credit side and decreases on the debit side.

Petty Cash Fund

A nominal sum of cash reserved for quick payments of assorted trivial expenses.

Replenishing

Refers to the process of adding stock or supplies to bring quantities back up to predetermined levels.

Debit To Cash

An accounting entry that increases the cash balance in a company's books, reflecting an influx of money.