A Local Medical Clinic Operates Five Days Per Week with a Daily

question 91

Multiple Choice

A local medical clinic operates five days per week with a daily payroll of $100,000. Employees are paid every Tuesday for the prior week's work (Monday through Friday) . The last day of the month is Tuesday, April 30. What effect does the accrual at April 30 have on the clinic's net income?

• A)Increase by $200,000
• B)Decrease by $300,000
• C)Decrease by $200,000
• D)Increase by $300,000

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Definitions:

Slope

The rate at which a line on a graph inclines or declines, indicating the relationship between two variables on a plotted curve.

Movement Along

The change in quantity demanded or supplied of a good due to a change in its price, represented graphically by a movement along a demand or supply curve.

Slope

In mathematics and economics, the rate at which one variable changes over the change in another variable, often used in the context of supply and demand curves.

Ovals

Simple, elongated round shapes that can be geometric forms in design or natural formations.