An Asset Source Transaction

question 64

Multiple Choice

An asset source transaction

• A) increases one asset and decreases another.
• B) increases an asset and increases a liability or equity.
• C) increases an asset and decreases a liability or equity.
• D) decreases an asset and increases a liability.

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Definitions:

Average-Fixed-Cost Curve

A graphical representation showing how the average fixed costs of production decrease as output increases, due to spreading fixed costs over a larger number of units.

Total-Cost Curve

A graph that shows the total cost of producing different quantities of a good or service.

Marginal-Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good varies as the production volume changes.

Average-Fixed-Cost Curve

A graphical representation that shows the fixed costs of production per unit of output declining as the quantity of output increases.