Interest Expense in the Worksheet's Trial Balance Column Is $3,000

question 30

Multiple Choice

Interest expense in the worksheet's trial balance column is $3,000.Interest expense in the income statement column is $7,000.Which of the following entries would have caused this difference?

• A) A $7,000 credit to Interest expense in the worksheet's adjustments column
• B) A $7,000 credit to Interest payable in the worksheet's adjustments column
• C) A $4,000 debit to Interest expense in the worksheet's adjustments column
• D) A $4,000 credit to Interest expense in the worksheet's adjustments column

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Definitions:

Output

The total amount of goods or services produced by a firm, industry, or economy in a given period.

Marginal Wage Cost

The additional cost incurred by hiring an extra unit of labor, essentially the change in total wage cost from hiring one more employee.

Monopsonistic Labor Market

A market situation in which there is only one buyer (employer) for many sellers (workers), allowing the buyer to exert considerable control over wages and employment conditions.

MRP

Marginal Revenue Product; the additional revenue generated by employing one more unit of a factor, such as labor or capital.