During January 2015, the First Month of Operations, a Consulting

question 58

Multiple Choice

During January 2015, the first month of operations, a consulting firm had following transactions:
1.Issued common stock to owners in exchange for $20,000 cash.
2.Purchased $5,000 of equipment, paying $1,000 cash and signing a promissory note for $4,000.
3.Received $9,000 in cash for consulting services performed in January.
4.Purchased $1,500 of supplies on account; all of the supplies were used in January.
5.Provided consulting services on account in the amount of $16,000.
6.Paid $750 on account.
7.Paid $3,000 to employees for work performed during January.
8.Received a bill for utilities for January of $3,400; the bill remains unpaid.
-Use the information above to answer the following question.What is the amount of total revenue to be reported on the income statement for the month of January?

• A) $45,000.
• B) $9,000.
• C) $29,000.
• D) $25,000.

Describe the relationship between marginal cost, average total cost, and average variable cost.

Understand the impact of changes in fixed costs on average fixed costs and total costs.

Interpret production and cost diagrams to identify cost components and their implications on production decisions.

Relate the concepts of marginal product and marginal cost to the efficiency of production inputs.

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Definitions:

Laxatives

Substances taken to ease bowel movements and relieve constipation by softening stools or stimulating bowel activity.

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A form of low blood pressure that happens when standing up from sitting or lying down, causing dizziness or fainting.

Isometric Exercises

Workouts where muscles contract without changing length, effectively increasing strength without movement.

Range-of-Motion Exercises

Physical activities designed to move joints through their full span of motion to improve or maintain flexibility and muscle strength.