Which Statement Is Correct

question 53

Multiple Choice

Which statement is correct?

• A)HST payable is a financial liability.
• B)Bank overdraft is a non-financial liability.
• C)Unearned revenue is a non-financial liability.
• D)Unearned subscriptions are a financial liability.

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Definitions:

Output

The quantity of goods or services produced by a firm, industry, or economy within a certain period.

Per-Unit Cost

The cost associated with producing one unit of a product, calculated by dividing total production costs by the number of units produced.

Diseconomies of Scale

The situation where a company or business grows so large that the costs per unit increase, typically due to inefficiencies.

Economies of Scale

Economies of scale describe the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.