Identify the Account Below That Is Classified as an Asset

question 230

Multiple Choice

Identify the account below that is classified as an asset account:

• A)Unearned Revenue
• B)Accounts Payable
• C)Supplies
• D)Common Stock
• E)Service Revenue

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Short Run

A period in economics where the output is influenced by the level of production capacity, and certain economic conditions or costs cannot change.

Long Run

In economics, a period in which all inputs can be adjusted by firms, and there are no fixed costs, allowing for full industry adjustment.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, begins to decrease.