Jamie Has Enough Money to Buy Either a Mountain Dew,or

question 127

Multiple Choice

Jamie has enough money to buy either a Mountain Dew,or a Pepsi,or a bag of chips.He chooses to buy the Mountain Dew.The opportunity cost of the Mountain Dew is

• A) the Pepsi and the bag of chips.
• B) the Pepsi or the bag of chips, whichever the highest-valued alternative forgone.
• C) the Mountain Dew.
• D) the Pepsi because it is a drink, as is the Mountain Dew.
• E) zero because he enjoys the Mountain Dew.

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Definitions:

Voucher System

A control procedure in accounting where vouchers are used to authorize and document transactions before payment is made.

Supporting Documents

Documentation that provides evidence for financial transactions, serving as a basis for recording entries in the accounting system.

Internal Control

Procedures and policies implemented by a company to safeguard assets, ensure accurate reporting, and comply with laws and regulations.

Customer's Ledger

A ledger that contains the individual accounts of customers, showing their transactions and balances.