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A Petty Cash Fund Was Established with a $400 Balance

question 16

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A petty cash fund was established with a $400 balance.It currently has cash of $9 and petty cash tickets as shown below.  Travel expense $120 Office supplies $200 Equipment rental expense $70\begin{array}{|l|r|}\hline \text { Travel expense } & \$ 120 \\\hline \text { Office supplies } & \$ 200 \\\hline \text { Equipment rental expense } & \$ 70\\\hline \end{array} The journal entry to replenish the account would be which of the following:


Definitions:

Constant Returns to Scale

A situation in which increasing the amount of inputs results in a proportional increase in outputs.

Diseconomies of Scale

A situation in which production costs increase as a firm’s output increases, leading to decreased efficiency.

Decreasing Returns to Scale

Decreasing Returns to Scale occurs when a firm increases all inputs by a certain proportion, but the output increases by a smaller proportion, indicating reduced efficiency.

Average Costs

The total cost of production divided by the number of units produced, often used to assess efficiency and profitability.

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