The Closing Entry for the Salaries Expense Account Would Include

question 56

Multiple Choice

The closing entry for the Salaries Expense account would include a debit to:

• A)net income and a credit to Salaries Expense.
• B)Salaries Expense and a credit to net income.
• C)Retained Earnings and a credit to Salaries Expense.
• D)Salaries Expense and a credit to Retained Earnings.

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Definitions:

Marginal Rates of Substitution

The speed at which a buyer is prepared to sacrifice one item for another while keeping their satisfaction constant.

Bads

Are items that people do not desire to have, opposite to goods, which have a negative impact on utility when consumed.

Indifference Curves

Graphical representations in microeconomics showing different bundles of goods between which a consumer is indifferent.

Indifference Curves

Indifference Curves represent combinations of two goods that provide the consumer with the same level of satisfaction or utility, illustrating trade-offs in consumption choices.