Which of the Following Statements About Revenues and Expenses Is

question 112

Multiple Choice

Which of the following statements about revenues and expenses is correct?

• A)Credits increase both revenues and expenses.
• B)Credits increase expenses and decrease revenues.
• C)Credits increase revenues and decrease expenses.
• D)Credits decrease both revenues and expenses.

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Definitions:

Excess Quantity

A situation where the supply of a product exceeds the demand for it.

Consumer Surplus

is the difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay.

Market Price

The immediate rate at which an asset or service can be traded in a specific trading place.

Producer Surplus

The gap between what sellers are prepared to accept for a product or service and the real amount they end up getting.