Consider the Following Events for Sophia Incorporated:
April 5 $\quad$ Sophia Purchases Volleyballs For

question 83

Multiple Choice

Consider the following events for Sophia Incorporated:
April 5 $\quad$ Sophia purchases volleyballs for $\$ 200$ on account.
April 6 $\quad$ Sophia advertises a sand volleyball camp for $\$ 20$ a person.
April 12 $\quad$ Thirty people sign up for the camp paying a total of $\$ 600$ .
April 21 $\quad$ Sophia hosts the sand volleyball camp.
April 23 $\quad$ Sophia pays for the volleyballs purchased on April 5.
Under accrual-basis accounting,what is the appropriate day to record the revenues from the sand volleyball camp?

• A)April 5.
• B)April 6.
• C)April 12.
• D)April 21.

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Definitions:

Diamond/Water Paradox

A paradox highlighting the contradiction between the high value of items with little utility (diamonds) and the low value of items with great utility (water), illustrating the difference between total and marginal utility.

Value in Exchange

The worth that a product or service has in the marketplace, determined by what others are willing to give up in exchange for it.

Marginal Utility

The increased gratification or utility obtained by consuming an additional unit of a good or service.

Total Utility

The total satisfaction received by a consumer from consuming a certain amount of a good or service.