The Check Written to Establish the Petty Cash Fund Is

question 116

Multiple Choice

The check written to establish the petty cash fund is entered in the journal by

• A) debiting Cash and crediting Petty Cash.
• B) debiting Petty Cash and crediting Owner's Capital.
• C) debiting Owner's Capital and crediting Petty Cash.
• D) debiting Petty Cash and crediting Cash.

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Definitions:

Fixed Factor

A resource or input whose quantity cannot easily be changed in the short run.

Diminishing Returns

A principle stating that if one factor of production is increased while others are held constant, the output per unit of the variable factor will eventually decrease.

AVC

Average variable cost, which is the total variable cost divided by the quantity of output produced.

ATC

Stands for Average Total Cost, which is the total cost per unit of output produced.