The Business Failed to Close Any of the Revenue Accounts

question 31

Multiple Choice

The business failed to close any of the revenue accounts. The result of this error is that:

• A) revenues will be understated.
• B) capital will be understated.
• C) the assets will be overstated.
• D) the liabilities will be overstated.

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Definitions:

Skilled Labor

Workers who possess specialized skills, training, or knowledge that are used in the production of goods or the provision of services.

Wage Rates

The amount of money paid to workers per unit of time, often an hour, reflecting compensation for labor.

Labor Productivity

The output per worker, measuring how efficiently labor is used in the production process.

Marginal Revenue Product

Is the additional revenue generated from employing one more unit of a resource, holding all other factors constant.