Which of the Following Accounts Increases with a Credit

question 2

Multiple Choice

Which of the following accounts increases with a credit?

• A)Accounts receivable
• B)Cash
• C)Capital
• D)Prepaid expenses

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Definitions:

Producer Surplus

The difference between what producers are willing to sell a product for and the actual price at which they sell it.

Market Supply Elasticity

A measure of how much the quantity supplied of a good changes in response to a change in price.

Supply Curves

Graphical representations showing the relationship between the price of a good and the amount of it that producers are willing to supply at that price.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, indicating the cost to produce an additional unit when fixed costs are excluded.