Use the Following to Answer Question(s): Marginal Benefits and Marginal

question 50

Multiple Choice

Use the following to answer question(s) : Marginal Benefits and Marginal Costs

-(Exhibit: Marginal Benefits and Marginal Costs) In the exhibit, more time spent studying economics adds points to economics scores but subtracts points from accounting scores.When the student studies economics for 4 hours, the marginal benefit is _______ ; when the student studies for 6 hours, the marginal benefit is _______.

• A) 20; 10
• B) 30; 10
• C) 20; 0
• D) 20; 30

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Definitions:

GAAP

Commonly adhered to accounting rules and standards for financial reporting, known as Generally Accepted Accounting Principles.

Merchandise On Account

Goods that have been purchased but not yet paid for, often resulting in an accounts payable for the buyer.

Sales Allowance

A reduction in the selling price of goods or services, typically granted to customers for various reasons like minor defects or dissatisfaction.

Partial Derecognition

The process in accounting where only a portion of a financial asset or liability is removed from the balance sheet.