Decreases in Equity That Represent Costs of Providing Products or Services

question 49

Multiple Choice

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

• A)Liabilities.
• B)Equity.
• C)Dividends.
• D)Expenses.
• E)Common Stock.

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Definitions:

Entry Restrictions

Regulations or requirements that limit or control the access of new competitors into a market or industry.

Revenue Function

A mathematical relation that calculates the total revenue generated by selling goods or services, typically as a function of price or quantity.

Total Profits

The total income a business has after subtracting all costs and expenses from total revenue.

Cost Function

A cost function calculates the total expense required to achieve a specific level of production or activity.