If a Firm Sells 100 Units of Output at a Price

question 85

Multiple Choice

If a firm sells 100 units of output at a price of $5 and each unit costs $3 to produce,the firm's total revenue equals

• A)$3
• B)$5
• C)$200
• D)$300
• E)$500

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Definitions:

Accrue Interest Expense

The recording of interest expense that has been incurred but not yet paid, typically on borrowed funds.

Financial Statements

These are formal records that outline the financial activities and condition of a business, entity, or individual.

Net Income

The final profit figure for a company, calculated by subtracting all expenditures and taxes from revenues.

Total Liabilities

The combined debts and obligations that a company owes to outside parties at any given time.