When MB = 171 − 8Y and TC = 5Y²

question 32

Multiple Choice

When MB = 171 − 8Y and TC = 5Y² + 108,the optimal level of Y is:

• A) 25.
• B) 9.5.
• C) 8.
• D) 24.

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Definitions:

Closing Entries

Made at the end of the accounting period to transfer balances in temporary (income statement) accounts to Retained Earnings and to establish a zero balance in each of the temporary accounts for beginning the next accounting period.

Account Balances

The total amount of money in an account at a certain point in time, which can represent assets or liabilities depending on the account type.

Temporary Accounts

Accounts that are cleared out at the end of each accounting period, including revenues, expenses, and dividends accounts.

Permanent Accounts

Balance sheet accounts that carry their ending balances into the next accounting period, including assets, liabilities, and equity accounts.