Which of the Following Statements Is False

question 256

Multiple Choice

Which of the following statements is false?

• A)When marginal cost equals average total cost, average total cost is at its highest value.
• B)The marginal cost curve intersects the average variable cost curve and the average total cost curve at their minimum points.
• C)The difference between average total cost and average fixed cost is average variable cost.
• D)Firms often refer to the process of lowering average fixed cost as "spreading the overhead."

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Definitions:

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.

Installment Note Payable

A liability representing a loan that requires regular payments or installments over a specified period until the full principal and interest are paid.

Interest Expense

The amount an entity pays over time for the use of borrowed funds.

General Journal Entry

A general journal entry is a record of financial transactions in the accounting records of a business.