A Credit Is Used to Record

question 81

Multiple Choice

A credit is used to record:

• A) A decrease in an expense account.
• B) A decrease in an asset account.
• C) An increase in an unearned revenue account.
• D) An increase in a revenue account.
• E) All of these answers are correct.

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Definitions:

Diseconomies Of Scale

Occur when a company grows so large that the costs per unit increase. It is the opposite of economies of scale.

Long-Run Average Total Cost Curve

A graphical representation showing the lowest possible cost at which any given level of output can be produced in the long run.

Total Cost Curve

A graphical representation showing the total cost incurred by a firm in the production of goods or services at different levels of output.

Quantity

The volume of a physical or non-physical item or service.