What Is the Firm's Gain in Profit from Hiring Another

question 151

Multiple Choice

What is the firm's gain in profit from hiring another worker?

• A)The marginal revenue product of the extra worker.
• B)The difference between marginal revenue product and the wage of the worker.
• C)The extra output of the extra worker.
• D)The reduction in costs from hiring another worker.

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Definitions:

Adjusting Entries

Journal entries used to adjust the accounting records for events that have occurred but not yet recorded in the financial statements at the end of the accounting period.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances from temporary accounts to permanent accounts, thus preparing the accounts for the next period.

Work Sheet Heading

The title section of a work sheet that typically includes the company name, title of the document, and the period covered.

Adjusted Trial Balance

A list of all the accounts of a company, showing the balances after adjustments, used to prepare financial statements.