Use the Figure Below to Answer the Following Question

question 31

Multiple Choice

Use the figure below to answer the following question. Figure 9.3.2
-Which one of the following statements about Figure 9.3.2 is true?

• A)Point S is preferred to point Q,but S is not affordable.
• B)Point R is not affordable.
• C)Point T is preferred to point Q,but T is not affordable.
• D)Points Q and S cost the same,but Q is preferred to S.
• E)Point R is the best affordable point.

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Definitions:

Purchases Discount

An accounting reduction in the price paid for goods or services if payment is made within a specified period.

Unearned Revenue

A liability account that records amount owed for goods or services in advance of delivery. The Cash account would record the receipt of cash.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Service Income

Income earned from the provision of services to clients or customers.