Refer to the Information Provided in Figure 2

question 113

Multiple Choice

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4
-According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars

• A) decreases.
• B) increases.
• C) remains constant.
• D) initially increases, then decreases.

---

Definitions:

Journal

An accounting record in which transactions are initially recorded in chronological order.

Footing

An accounting term referring to the final total that appears at the bottom of a column of numbers or the process of adding up figures in a column.

Cross-footing

A method used in accounting to check the arithmetic accuracy of accounts by comparing the sums of the totals in the opposite directions.

Special Journals

Special journals are accounting tools used to record specific types of transactions in a more efficient manner, such as sales, purchases, cash receipts, and disbursements.