Closing Entries Transfer Net Income or Loss and Dividends Paid

question 29

Multiple Choice

Closing entries transfer net income or loss and dividends paid to:

• A) Paid-in Capital.
• B) Net Income.
• C) Common Stock.
• D) Retained Earnings.

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Definitions:

Marginal Product

The additional output resulting from employing one more unit of a particular input, keeping other inputs constant.

Optimal Employment

The level of employment where the marginal product of labor equals the real wage rate, maximizing efficiency and productivity in the use of labor resources.

Marginal Product

The additional output resulting from using one more unit of a production input, keeping all other inputs constant.

Marginal Revenue

The supplementary income generated from the sale of an extra unit of a good or service.