The Journal Entry to Record the Final Installment from a Common

question 53

Multiple Choice

The journal entry to record the final installment from a common stock subscription is:

• A) a debit Cash and a credit to Paid in Capital in Excess of Par Value-Common Stock.
• B) a debit to Subscriptions Receivable-Common Stock and a credit to Cash.
• C) a debit to Cash and a credit to Subscriptions Receivable-Common Stock.
• D) a debit to Common Stock Subscribed and a credit to Cash.

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Definitions:

Marginal Revenue Product

the additional revenue generated from using one more unit of a factor of production, holding other factors constant.

Marginal Revenue Product

The supplementary earnings derived from the utilization of an additional production factor unit.

Marginal Revenue Product

The additional income generated from selling one more unit of a good or service, calculated as the extra revenue produced by the marginal unit of output.

Optimal Use

Optimal use refers to the most efficient way to employ resources to achieve the highest level of satisfaction or output.