The Orbus Company Has a 30,000 Unrealized Gain and a 10,000

question 45

Multiple Choice

The Orbus company has a 30,000 unrealized gain and a 10,000 unrealized loss.Where would Orbus company report these transactions?

• A) only in non-current assets and liabilities.
• B) in stockholders' equity.
• C) other comprehensive income
• D) on the balance sheet as a current asset

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Definitions:

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced, a critical factor in economic analysis of a company's efficiency.

Shut-down Point

The level of operation at which a firm's total revenue is equal to its total variable costs, below which it is more beneficial for a firm to cease production.

Average Variable Cost

The variable cost (cost that changes with production volume) divided by the quantity of output produced.

Profit-maximizing

Refers to the process by which a company determines the price and output level that returns the greatest profit.