-The Table Above Gives the Utility from Pens and Pencils

question 136

Multiple Choice

-The table above gives the utility from pens and pencils. If the consumer has an income of $4, pens cost $1, and pencils cost $.20, what is the consumer's total utility when he or she maximizes utility?

• A) 374
• B) 225
• C) 405
• D) 365

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Definitions:

Adjustments and Closing Entries

The journal entries made at the end of an accounting period to allocate income and expenditures to the appropriate periods.

Ledger

A book or database in which financial transactions are recorded, organized by account.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Work Sheet

An informal accounting document used internally to compile information for the financial statements and to support adjustments to those statements.