Which of the Following Is True of the First Closing

question 91

Multiple Choice

Which of the following is true of the first closing entry?

• A)Retained Earnings is not involved in the entry.
• B)Retained Earnings is always debited.
• C)Retained Earnings is always credited.
• D)Retained Earnings may be debited or credited.

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Definitions:

Marginal Cost

Marginal cost refers to the increase in total cost that arises from producing one additional unit of a good or service.

Block Pricing

A pricing strategy where different quantities of a product or service are sold at different prices, usually implying that larger quantities are sold at a lower per-unit price.

First-Degree Price Discrimination

Practice of charging each customer her reservation price.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product or service.