Addison Company Experienced an Accounting Event That Affected Its Financial

question 124

Multiple Choice

Addison Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on Addison's financial statements?

• A) Issued common stock
• B) Earned revenue on account
• C) Earned cash revenue
• D) Collected cash from accounts receivable

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Definitions:

Short Run

A time period in economics where at least one factor of production is fixed, limiting the immediate response of a firm to changes in market conditions.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.

Average Variable Cost

The total variable cost divided by the quantity of output produced.

Output

The amount of goods or services produced by a company, sector, or economy.