The Other Revenues and Expenses Section of a Multistep Income

question 35

Multiple Choice

The other revenues and expenses section of a multistep income statement could include all the following except

• A)interest expense.
• B)interest income.
• C)dividend income.
• D)insurance expense.

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Definitions:

Consumer Surplus

The gap between what consumers are ready to pay for a product or service and the actual amount they spend.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.

Total Utility

The entire pleasure derived from using a certain aggregate quantity of a good or service.

Consumer Surplus

The difference between the maximum price consumers are willing to pay for a good or service and the actual price they do pay.