A Firm Employs 10 Workers at a Weekly Wage of $500.If

question 41

Multiple Choice

A firm employs 10 workers at a weekly wage of $500.If it employs an eleventh worker,it has to raise all of its workers wage to $520.The eleventh worker adds $750 a week to revenues.If the firm hires the eleventh worker,its weekly profits will

• A) go up by $230.
• B) go up by $30.
• C) go up by $23.
• D) go down by $270.

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Definitions:

Closing Entries

Transactions noted at the end of an accounting cycle for the purpose of transferring balances from temporary accounts to their permanent counterparts.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Post-Closing Trial Balance

A listing of all balance sheet accounts with balances after closing entries are made, used to verify the equality of debits and credits.

Current Ratio

A financial metric comparing a company's current assets to its current liabilities to assess liquidity.