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Increases and Decreases in Various Types of Accounts Are Listed

question 78

Essay

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit.
Increases and decreases in various types of accounts are listed below. In each case, indicate by  Dr.  or  Cr.  (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit.

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Definitions:

Utilities

Services such as electricity, water, and gas that are consumed by businesses and households.

100% Capacity

The maximum level of operational output that a facility can achieve under normal conditions within a specific time frame.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume, such as rent or salaries.

Per Unit

A measure or cost expressed as an amount per individual item or unit.

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