Use the Following to Answer Question

question 259

Multiple Choice

Use the following to answer question:
-(Table: Cost Data) Use Table: Cost Data.The average fixed cost of producing 5 purses is:

• A)$0.
• B)$50.
• C)$25.
• D)$10.

---

Definitions:

Unearned Revenues

Funds paid to a business for products or services that are to be supplied or carried out in the future.

Adjusting Entry

An accounting entry made in the books at the end of an accounting period to allocate income and expenditure to the correct period.

Accrued Revenue

Revenue that has been earned through sales or services provided but not yet received by the company.

Adjusting Entry

A journal entry made at the end of an accounting period to record unrecorded income or expenses to ensure that the financial statements comply with the accrual basis of accounting.