When a T Account Has Several Items on Both Sides

question 65

Multiple Choice

When a T account has several items on both sides, the balance of the account is written

• A) on the side with the greatest number of items.
• B) on the side with the least number of items.
• C) on the side with the larger total.
• D) on the side with the smaller total.
• E) in none of these locations.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or sales, such as materials and labor.

Direct Labor-Hours

A measure of the time workers spend directly manufacturing a product or providing a service.

Fixed And Variable Cost

Fixed costs are expenses that do not change with the level of production or sales, such as rent, while variable costs fluctuate with production volume, such as materials and labor.

Planning Budget

A budget prepared for a specific level of activity that outlines expected revenues, expenditures, and resources needed to achieve a particular financial goal.