If the Demand Curve for Wedding Cakes Shifts to the Right

question 148

Multiple Choice

If the demand curve for wedding cakes shifts to the right, then the value of the marginal product of labor for bakers will

• A)rise.
• B)fall.
• C)remain unchanged.
• D)rise or fall; either is possible.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Uncollectible Accounts

Uncollectible accounts are debts owed to a company that are considered uncollectable and are written off as a bad debt expense.

Allowance for Doubtful Accounts

A contra account that represents the estimated amount of accounts receivable which may not be collectible.

Adjusting Entry

An accounting record made to adjust revenues and expenses to match the accounting period they were incurred, ensuring compliance with the accrual basis of accounting.