At the End of the Month BBB Ltd Determined That

question 71

Multiple Choice

At the end of the month BBB Ltd determined that the cost to them of goods that had been sold during the month was $125,000.How would this information be recorded?

• A)The information is not recorded as no economic event had taken place.
• B)Dr.Expenses $125,000, Cr Inventory $125,000.
• C)Dr.Inventory $125,000, Cr Cash $125,000.
• D)Dr.Expenses $125,000, Cr.Accounts payable of $125,000

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Definitions:

Marginal Revenue

The additional income earned from selling one more unit of a good or service, an important concept in pricing and production decisions.

Total Revenue

The total amount of money generated by the sale of goods or services by a company before any costs are subtracted.

Barrier To Entry

Factors that prevent or inhibit new competitors from easily entering an industry or area of business, including high startup costs, strict regulations, and significant technological challenges.

Monopolistic Industry

An industry dominated by a single firm that has control over the market prices and supply of a product or service.