Which of the Following Is Not a Permanent Account

question 154

Multiple Choice

Which of the following is not a permanent account?

• A) Supplies
• B) Common Stock
• C) Depreciation Expense-Equipment
• D) Accounts Receivable

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Definitions:

U-Shaped AVC

The U-Shaped Average Variable Cost curve represents how the per-unit production expenses initially decrease due to increasing returns and subsequently increase after reaching a certain scale due to diminishing returns.

Perfectly Competitive

A perfectly competitive market is one with many buyers and sellers, where no single entity can influence the market price, and all products are identical.

Profit-Maximizing

A strategy or approach focused on increasing a firm’s profits to the highest possible level given its production costs and market demand.

Downward-Sloping

A characteristic of demand curves where price and quantity demanded move in opposite directions.