Which of the Following Is Not an Explanation of Why

question 134

Multiple Choice

Which of the following is not an explanation of why a company would operate at less than theoretical capacity?

• A) Scheduled maintenance of equipment.
• B) Breakdowns in equipment.
• C) Customer demand is less than anticipated.
• D) Customer demand is more than anticipated.

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Definitions:

Prepaid Rent

An accounting term for payments made in advance for rent that covers future periods, recorded as an asset on the balance sheet until it is consumed.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and put into use.

Unearned Ticket Revenue

Revenue received from tickets sold for future events, which is considered a liability until the service (the event) is provided.

Adjusted Trial Balance

An accounting worksheet that reflects the account balances after adjustments are made for accruals and deferrals at the end of a reporting period.