Closing Entries Included Debits to Revenues for a Total of $5,300

question 8

Multiple Choice

Closing entries included debits to revenues for a total of $5,300, credits to expenses for a total of $3,400, and a credit to dividends for $700. The net income for the month was:

• A)$700.
• B)$1,900.
• C)$3,400.
• D)$4,600.

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Definitions:

Fixed Proportions

A production process where inputs are used in strict, unchangeable ratios.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Demand Curve

A graph displaying the relationship between the price of something and the quantity demanded at those prices.

Labor Productivity

Labor productivity measures the output of goods and services per unit of labor input, indicating the efficiency and effectiveness of the workforce.