An Increase in Worker Productivity

question 262

Multiple Choice

An increase in worker productivity

• A) reduces the demand for labor.
• B) increases the demand for labor.
• C) reduces the supply of labor.
• D) increases the supply of labor.

---

Definitions:

January 1 Retained Earnings

The amount of net income left over for a company from the previous fiscal year, reported at the start of the new year on January 1.

Downstream Transfer

A transaction or movement of goods, services, or funds from a parent company to a subsidiary or from a higher level to a lower level within an organizational structure.

Upstream Transfer

A transfer of assets or resources from a subsidiary to its parent company, often examined for tax and financial reporting implications.

Worksheet Entry

An adjustment recorded on a worksheet, which is not yet posted to formal accounting records, often used in the process of preparing financial statements.