Holding Everything Else Equal, Total Revenue Increases

question 129

Multiple Choice

Holding everything else equal, total revenue increases

• A)only when quantity increases.
• B)only when price increases.
• C)whenever total costs increase.
• D)when either price or quantity increase.
• E)only when both price and quantity increase.

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Definitions:

Operating Expenses

Costs incurred during the normal operations of a business, excluding costs related to the production of goods or services.

Direct Method

A cash flow statement preparation approach that lists major categories of gross cash receipts and payments.

Depreciation Expense

The methodical distribution of the expense of a physical asset over its estimated life span.

Prepaid Expenses

Payments made for goods or services to be received in the future; recognized as assets on the balance sheet until the benefit of the goods or services is realized.