Which of the Following Account Balances Will Typically Be Increased

question 240

Multiple Choice

Which of the following account balances will typically be increased as a result of adjusting entries?

• A) Interest Payable
• B) Cash
• C) Supplies
• D) Prepaid Rent

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output expands, typically due to inefficiencies and increased complexity.

Average Total Costs

The total cost of production divided by the quantity of output produced; a measure of cost per unit of output.

Scale of Operations

The scope, size, or capacity at which a company or organization performs its activities, impacting costs, efficiency, and potential for growth.

Economies of Scale

Reductions in per-unit cost that organizations achieve through expanded production scales, where larger output volumes usually mean decreased costs per unit.