If the Consumption of a Good or Service by One

question 196

Multiple Choice

If the consumption of a good or service by one person does not decrease the quantity available for another person, the good or service is

• A) nonrival.
• B) nonexcludable.
• C) pure.
• D) free.

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Definitions:

Purchases

Acquisition of goods or services in exchange for money, usually considered in the context of inventory or supplies for a business.

General Journal

An accounting ledger that records all types of transactions before they are transferred to specific accounts in the general ledger.

Gross Method

An accounting practice for recording purchases with a discount, where the purchase is initially recorded at gross amount with the potential discount noted separately.

Sales Discounts

A reduction in the price of goods or services offered to a customer, intended to encourage prompt payment or increase sales.