Which of the Following Will Be Included in a Consolidation

question 120

Multiple Choice

Which of the following will be included in a consolidation entry for 2018?

• A) Debit retained earnings for $5,000.
• B) Credit retained earnings for $5,000.
• C) Debit investment in subsidiary for $5,000.
• D) Credit investment in subsidiary for $5,000.
• E) Credit land for $5,000.

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Definitions:

Median Earnings

The middle value of earnings in a given distribution, with an equal number of persons earning more and less than this value.

Efficiency-wage Model

A theory suggesting that higher wages can lead to increased productivity by attracting better workers and motivating them to work harder.

Marginal Productivity

The additional output generated by employing one more unit of a particular input, holding other inputs constant.

Diminishing-returns Theory

The principle that says that if one factor of production is increased while others are held constant, the incremental output will eventually decrease.