A Business Uses a Credit to Record

question 222

Multiple Choice

A business uses a credit to record:

• A)An increase in an expense account.
• B)A decrease in an asset account.
• C)A decrease in an unearned revenue account.
• D)A decrease in a revenue account.
• E)A decrease in a common stock account.

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Definitions:

Needed Financing

The amount of money required to fund a project, venture, or cover operational expenses not met by current revenues.

Process Innovation

The development and use of new or improved production or distribution methods.

Total Product Curve

A graphical representation showing how the total quantity of output produced by a firm varies with the quantity of a single variable input, holding other inputs constant.

Average Total Cost Curve

A graph that represents the total cost of production (fixed and variable costs combined) divided by the quantity of output produced, at various levels of output.