The Income Statement Presents a Summary of an Entity's Revenues

question 169

Multiple Choice

The income statement presents a summary of an entity's revenues and expenses for a period of time.Which of the following statements is true of an income statement?

• A)There is net income when total expenses are greater than total revenues.
• B)There is a net loss when total expenses are less than total revenue.
• C)There is a net loss when total expenses are greater than total liabilities.
• D)There is net income when total revenues are greater than total expenses.

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Definitions:

Marginal Physical Product

The additional output that results from using one more unit of a factor of production, keeping other factors constant.

Marginal Revenue Product

Marginal Revenue Product measures the increase in revenue realized from employing one additional unit of input, such as labor or capital, holding all other inputs constant.

Total Revenue Product

The total revenue product is the total revenue generated by a factor of production, such as labor or capital, based on its marginal product and the price of the goods or services produced.

MRP

Marginal Revenue Product, the additional revenue generated from employing one more unit of a resource.