In the First Month of Operations for Gallowsbird Industries, the Total

question 76

Multiple Choice

In the first month of operations for Gallowsbird Industries, the total of the debit entries to the cash account amounted to $36,000 ($16,000 investment by stockholders and revenues of $20,000) .The total of the credit entries to the cash account amounted to $22,000 (purchase of equipment $8,000 and payment of expenses $14,000) .At the end of the month, the cash account has a(n)

• A)$6,000 credit balance.
• B)$6,000 debit balance.
• C)$14,000 debit balance.
• D)$14,000 credit balance.

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Definitions:

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly, the seller faces no competition, as he is the sole seller of goods with no close substitute.

Bubbles

In economics, a market condition characterized by rapid escalation of asset prices followed by a contraction.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Monopolist

An individual or business entity that is the sole provider of a particular good or service, enabling control over market prices.