A Journal Entry Contains a Debit to a Liability Account

question 127

Multiple Choice

A journal entry contains a debit to a liability account and a credit to a revenue account.This is an example of a(n) :

• A)accrued expense.
• B)deferred expense.
• C)unearned revenue.
• D)accrued revenue.

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Definitions:

Increasing Returns

This refers to a scenario in economics where, as the quantity of input increases, the rate of output increases at a faster rate, leading to economies of scale.

Long-Run Total Cost

The aggregate cost of production when all factors of production are variable and the scale of operation can change.

Units of Variable K

In economics, this refers to units of a variable factor of production (K often denotes capital), where the quantity can be changed in the short run to increase or decrease production.

Units of Output

The quantity of goods or services produced by an entity in a given period of time.