Roxanne and Eileen Live in an Apartment Building with a Laundry

question 53

Multiple Choice

Roxanne and Eileen live in an apartment building with a laundry room in the basement.Roxanne does her laundry at home, spending $4 and 5 hours per week.Eileen sends her laundry out, spending $20 and 15 minutes per week transporting the laundry.On the basis of the information given, which one of the following must be true?

• A)Roxanne earns more labor income than Eileen.
• B)Eileen earns more total income than Roxanne.
• C)Roxanne enjoys doing laundry; Eileen does not.
• D)Eileen has less laundry than Roxanne.
• E)Eileen and Roxanne attach different utilities to time spent doing laundry.

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Definitions:

Accounting Information System

A system designed to collect, store, manage, process, retrieve, and report financial data for business operations.

General Ledger

The primary accounting record of a company that uses double-entry bookkeeping, summarizing all transactions over a period.

Cash Receipts Journal

A dedicated accounting journal used to record all cash inflows or receipts of a business.

Purchases Journal

A record of transactions specifically used for tracking all purchases of goods and services on credit.