What Is the Result If the Amount of Net Income

question 96

Multiple Choice

What is the result if the amount of Net Income for the year is less than the amount of the Owner's Withdrawals?

• A)Owner's Name, Capital increases
• B)Cash balance decreases
• C)Cash balance increases
• D)Owner's Name, Capital decreases

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Definitions:

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.

Total Revenue

The total income a firm receives from selling its products or services, calculated by multiplying the price per unit by the number of units sold.

Marginal Cost

Is the cost of producing one additional unit of a good or service.

Least-cost Combination

An optimal mix of inputs that minimizes the cost of production while yielding a given level of output.