Which of the Following Accounts Is Decreased by a Debit

question 101

Multiple Choice

Which of the following accounts is decreased by a debit entry?

• A) Unearned revenue
• B) Prepaid insurance
• C) Cash
• D) Insurance expense

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Definitions:

Short Run

A period during which at least one of a firm's inputs is fixed, limiting the firm's ability to adjust to changes in market demand or supply.

Quantity

The amount or number of a material or immaterial good that is considered as a unit or an aggregate.

Shut-down Point

The level of operation at which a company does not benefit from continuing operation and incurs losses by staying in business.

AVC

Average Variable Cost, which is the total variable costs of production divided by the quantity of output produced.