A Receptionist Worked One Month and Was Paid $2,000 at the End

question 112

Multiple Choice

A receptionist worked one month and was paid $2,000 at the end of the month.In transaction analysis,how does this transaction affect the accounting equation?

• A)Add $2,000 to Cash account and add $2,000 to Accounts Payable account.
• B)Add $2,000 to Accounts Receivable account and subtract $2,000 from Cash account.
• C)Add $2,000 to Salary Expense and subtract $2,000 from Retained Earnings account.
• D)Subtract $2,000 from Cash account and subtract $2,000 from Retained Earnings account.

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Definitions:

Average Fixed Costs

When the production expenses that stay uniform, regardless of production levels, are divided by the number of goods produced.

Average Total Cost

The total cost of production divided by the total quantity of goods or services produced, representing the average cost per unit of output.

Plant Size

The capacity or physical dimensions of a manufacturing or production facility, influencing its output and scale of operations.

Economies of Scale

Savings achieved by companies because of larger operational volumes, where the cost for each unit produced tends to drop as the scale of production grows.