The Following Information Is from the Income Statement of the Campus

question 156

Multiple Choice

The following information is from the Income Statement of the Campus Laundry Service: The entry to close the Service Revenue account includes a:

• A)debit to Service Revenue for $6,500.
• B)credit to Service Revenue for $6,500.
• C)debit to Income Summary for $6,500.
• D)debit to Retained Earnings for $6,500.

---

Definitions:

Returns to Scale

The rate at which output changes if the scale of all inputs is changed by the same proportion.

Output Level

The amount of product or service that is produced by a company or an economy at a given time.

Isoquants

Curves representing combinations of inputs which yield the same level of output in production theory, illustrating technical substitution and factor combinations.

MRTS

Marginal Rate of Technical Substitution; the rate at which one input must increase when another input decreases to keep output constant.