Which of the Following Is Decreased with a Credit

question 63

Multiple Choice

Which of the following is decreased with a credit?

• A)Unearned Service Revenue
• B)Consulting Revenue
• C)Accounts Payable
• D)Prepaid Rent

Grasp the requirements for causation and proximate cause in establishing negligence.

Acknowledge the role of express voluntary assumption of risk in tort defenses.

Understand how the courts consider physical and mental handicaps in applying the reasonable person standard.

Learn the exceptions and special considerations under state laws, including contributory negligence, last clear chance, and workers' compensation statutes.

---

Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over the short term, such as rent, salaries, and insurance.

Break-even Point

The break-even point is the sales level at which total revenues equal total costs, resulting in neither profit nor loss.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, showing the impact of fixed costs on earnings.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from gross profit, not including non-operating income and expenses, interest, and taxes.