Use the Following Information to Answer Questions

question 8

Multiple Choice

Use the following information to answer questions
Prague Corp.is authorized to issue 400,000 no par value common shares.Subscribers agree to purchase shares at $15 per share with a 30% down payment.
-The journal entry to record the issuance of the shares upon receipt of the final instalment includes a

• A)debit to Common Shares Subscribed for $750,000.
• B)credit to Common Shares for $525,000.
• C)credit to Common Shares for $225,000.
• D)debit to Subscriptions Receivable for $525,000.

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Definitions:

Cost Producing

The total expenses incurred in manufacturing a product or delivering a service.

Marginal Product

The additional output gained by employing one more unit of a given input.

Resource Maximization

It is the technique or strategy of optimally utilizing resources to achieve the highest possible output or efficiency.

Least-costly Combination

A perfect combination of resources that lowers the production cost while reaching a target output level.