A Journal Entry Which Records Revenue Must Include

question 33

Multiple Choice

A journal entry which records revenue must include:

• A)A debit to Cash.
• B)A credit to a revenue account.
• C)A credit to the owners' equity account.
• D)A debit to the owners' equity account.

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in a business’s level of activity or volume of output produced, such as materials and labor.

Differential Cost

The difference in cost between two alternative decisions or scenarios.

Incremental Cost

The additional cost associated with producing one more unit of a product.

Step-Wise Cost

Costs that remain constant for a certain level of activity but jump to a higher amount once a threshold is crossed.