Watson Foods Company,a Sole Proprietorship,reported the Following Transactions for September

question 69

Multiple Choice

Watson Foods Company,a sole proprietorship,reported the following transactions for September 2019.
a) The business received $23,000 cash from the owner in exchange for capital.
b) The business purchased office equipment for $11,500 for which $4,000 cash was paid and the balance was put on a note payable.
c) Paid insurance expense of $1,200 cash.
d) Paid the September utility bill for $800 cash.
e) Paid $1,800 cash for September rent.
f) The business had sales of $11,000 in September.Of these sales,60% were cash sales,and the balance was credit sales.
g) The business paid $8,000 cash for office furniture.
What are the total liabilities at the end of September 2019?

• A) $11,000
• B) $1,200
• C) $7,500
• D) $11,500

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Definitions:

Average Variable Cost (AVC)

The total variable cost divided by the quantity of output produced. It represents the variable cost of producing each additional unit.

Marginal Cost

The price of making one more unit of a product or service.

Average Product

The output per unit of input, such as labor or machinery, typically used in the context of analyzing production efficiency.

Marginal Cost

The increase in total cost that results from producing one additional unit of a good or service.