Which of the Following Describes the Transaction Resulting in a Journal

question 29

Multiple Choice

Which of the following describes the transaction resulting in a journal entry with a debit to Salaries payable and a credit to Cash?

• A) Salaries expense has been incurred but is unpaid.
• B) Cash was used to pay for salaries that were previously recorded as an expense.
• C)Cash was used to pay for salaries that were not previously recorded as an expense.
• D)Cash was used to prepay employee wages.

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Definitions:

ATC Curve

Average Total Cost Curve, a graph that shows the cost per unit of output produced, plotted against the quantity of output.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, resulting in a decrease in the per-unit cost as the output increases.

AVC

Average Variable Cost, which is the cost a company incurs to produce one additional unit of a product, excluding fixed costs.

ATC

Average Total Cost, the total cost of production divided by the number of units produced, often used in economics to analyze production efficiency.