If Services Are Rendered for Cash, Then

question 40

Multiple Choice

If services are rendered for cash, then

• A)assets will increase.
• B)liabilities will increase.
• C)stockholders' equity will decrease.
• D)liabilities will decrease.

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Definitions:

Average Product

The output per unit of input, calculated by dividing total production by the number of input units.

Labor

The human effort (physical or mental) that is used in the production of goods and services.

Producer Surplus

The difference between the actual amount producers receive for a good and the minimum amount they would be willing to accept.

Firm

A business enterprise or establishment engaged in commercial, industrial, or professional activities.