After Starting a New Fiscal Period on June 1^st,Net Income

question 18

Multiple Choice

After starting a new fiscal period on June 1^st,Net Income on the Balance Sheet for June 1^st has a zero balance because -

• A)the net income for May 31^st has not been transferred
• B)the net income for May 31^st has been transferred
• C)there has not been any income earned for June 1^st
• D)closing entries are not required for June 1^st

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Definitions:

Variable Cost

Costs that are directly proportional to the level of output or production.

Quantity

The amount or number of a product or service that is available for use or sale.

Marginal Product

The additional output resulting from a one-unit increase in the use of a variable input while holding other inputs constant.

Marginal Cost

The fees associated with creating one additional unit of a good or service.