The Revenue Received from the Sale of an Additional Unit

question 217

Multiple Choice

The revenue received from the sale of an additional unit of a product

• A)is a marginal benefit to the firm.
• B)is called profit.
• C)is called gross sales.
• D)is called a net gain.

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Definitions:

Noncash Asset

An asset that is not cash or does not directly translate into cash in a short period, such as property, plant, and equipment.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and has its own rights and obligations.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock on the open market.

Loss On Sale

A financial term representing the situation where the selling price of an asset is less than its purchase price.