Which of the Following Statements Is Incorrect

question 90

Multiple Choice

Which of the following statements is incorrect?

• A) The normal balance of the accounts receivable account is a debit.
• B) The normal balance of the owner's withdrawals account is a debit.
• C) The normal balance of an unearned revenues account is a credit.
• D) The normal balance of an expense account is a credit.
• E) The abnormal balance of a revenue account is a debit.

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the variable cost for each unit of output.

Meals

Prepared food items or servings eaten or intended to be eaten at any particular time, such as breakfast, lunch, or dinner.

Marginal Cost

The increment in total financial output required for producing one more unit of a product or service.

Production

The process of creating goods or services by combining labor, capital, and resources to meet consumer demand.