Figure 7-4 -Total Fixed Cost

question 29

Multiple Choice

Figure 7-4
-Total fixed cost

• A)increases as output increases.
• B)declines as output increases.
• C)is always zero.
• D)remains constant even if the firm shuts down.

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Definitions:

Journal Entry

A record in accounting that represents a transaction and its effects on various accounts, typically involving at least one debit and one credit.

Cash Short and Over

An account that tracks discrepancies between the expected cash amounts and the actual cash counted, indicating shortages or overages.

Bank Account Reconciling

The process of comparing and matching figures from the accounting records against those presented on a bank statement to ensure they are in agreement and accurate.

Adjusted Balance

The result of adjusting the balance of an account to reflect any debits or credits that have been posted to the account.