A Company Receives $111, of Which $11 Is for PST

question 143

Multiple Choice

A company receives $111, of which $11 is for PST (provincial sales tax) . The journal entry to record the sale would include a

• A) debit to PST Expense for $11.
• B) credit to PST Payable for $11.
• C) debit to Sales for $111.
• D) debit to Cash for $90.

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Definitions:

MRP

Marginal Revenue Product, the additional revenue generated from using one more unit of a factor of production.

Rent

Payment made periodically by a tenant to a landlord in exchange for the use of land, a building, or another property.

MRP

The additional revenue produced by increasing one unit of a production input, emphasizing the productivity aspect in revenue generation.

Factor of Production

Resources used in the creation of goods or services, commonly categorized into land, labor, capital, and entrepreneurship.