Use the Following to Answer Questions

question 15

Multiple Choice

Use the following to answer questions :
Figure: Rita's Time Allocation Budget Line
-(Figure: Rita's Time Allocation Budget Line) Look at the figure Rita's Time Allocation Budget Line.It is based on 80 hours available for labour and leisure.If her hourly wage doubles,the new time allocation budget line will have a point at _____ hours of leisure and _____ in income.

• A) 30;$1 000
• B) 40;$400
• C) 50;$700
• D) 60;$280

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Definitions:

Normal Balance

The usual balance of an account based on its classification in the accounting system, typically debit for assets and expenses, and credit for liabilities, equity, and revenue.

Financial Statement

Formal records of the financial activities and position of a business, person, or other entity.

Direct Write-off Method

An accounting approach where bad debts are recognized and recorded as an expense directly when they are deemed uncollectible.

General Journal

A fundamental accounting ledger that records all businesses transactions in chronological order, prior to being transferred to specific accounts.