If Liabilities Increase £3,000 During a Given Period and Owner's

question 23

Multiple Choice

If liabilities increase £3,000 during a given period and owner's equity decreases £1,000 during the same period,the assets must have:

• A) Increased by £3,000
• B) Increased by £2,000
• C) Decreased by £3,000
• D) Decreased by £2,000

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced; it varies with the level of output.

Long-Run Average Total Cost Curve

A graphical representation showing the relationship between output and average total cost when fixed cost has been chosen to minimize average total cost for each level of output.

Minimum

The lowest allowable or possible amount, level, or point.

Marginal Cost

The amount needed to generate one more unit of a good or service.