Which of the following is likely to occur as the result of the law of diminishing marginal utility? A. Petra's utility from he
r second apple was < her satisfaction from her first orange. B. Sabines' utility from her first granola bar is > Rachel's utility from her second granola bar. C. Wesley enjoyed his second bottle of iced tea < his first bottle, other things constant. D. Hudson enjoyed his second slice of pizza more than his first.
The law of diminishing marginal utility means that keeping other things at constant the marginal utility derived from the consumption of a commodity goes on declining with each additional unit of the commodity.
So, the marginal utility from the first unit will be highest, that from second unit will be lesser, that from third even lower and so on.
In the examples given above, Wesly's case is most applicable to this.
After adjusting the balances as per the bank and as per the books, the adjusted amounts should be the same. If they are still not equal, you will have to repeat the process of reconciliation again.
Once the balances are equal,<em> businesses need to prepare journal entries </em>for the adjustments to the balance per books.
The equity method of accounting is the method of producing investments in other companies. If a company invests in another corporation and holds 20 to 50 % share of the particular corporation and hence has a notable impact on the latter's administration then the investor (company) should apply the equity method of accounting to this investment and reports such investments on its balance sheet as an asset..
