Indicate How Each Event Affects the Elements of Financial Statements

question 7

Essay

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.

-An adjusting entry recorded as a debit to Unearned Service Revenue and a credit to Service Revenue.

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Definitions:

MU/P Ratio

The ratio of marginal utility (MU) to price (P), used to determine the optimal consumption point where consumer satisfaction per unit of cost is maximized.

Marginal Utility

The heightened benefit received from using one more unit of a good or service.

Marginal Utility Per Dollar

The additional satisfaction obtained from spending one more dollar on a good or service.