A Sole Proprietorship Reported the Following Transactions for the Month $\$ 8,000$

question 123

Multiple Choice

A sole proprietorship reported the following transactions for the month of March.The transactions have been journalized and posted to the proper accounts. Mar. I The business received $\$ 8,000$ cash from the owner in excharge for capital.
Mar. 2 Paid the first month's rent of $\$ 600$ .
Mar. 3 Purchased equipment by paying $\$ 1,000$ cash and executing a note payable for $\$ 3,000$ .
Mar. 4 Purchased office supplies for $\$ 600$ cash.
Mar. 5 Billed a client for $\$ 11,000$ of desipr services completed.
Mar. 6 Received $\$ 9,000$ on account for the services previously recorded. What is the balance in Accounts Receivable?

• A) $9,000
• B) $2,000
• C) $3,000
• D) $11,000

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Definitions:

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, while keeping other inputs constant.

Marginal Product

The increase in output resulting from the addition of one more unit of a certain input, while all other inputs are kept constant.

Units Per Period

A measure of productivity or output over a given time frame, indicating the number of units produced or sold.

Diminishing Marginal Returns

The principle that adding more of one factor of production, while holding others constant, will eventually yield lower additional outputs.