Which of the Following Accounts Is Closed at the End

question 27

Multiple Choice

Which of the following accounts is closed at the end of the year but does not enter the calculation of profit?

• A)Interest receivable
• B)Dividends declared
• C)Depreciation expense
• D)Salaries payable

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Definitions:

Diminishing Marginal Product

The principle that as additional units of a variable input are added to fixed inputs, the increase in output will eventually decrease.

Production Function

An equation expressing the relationship between inputs used in production and the output generated from those inputs.

Marginal Product

The increase in output that results from using one more unit of a particular input, assuming all other inputs remain constant.

Marginal Product

The additional output derived from adding one more unit of a specific input, while holding all other inputs constant.