A Chart of Accounts

question 12

Multiple Choice

A chart of accounts:

• A)is where transactions are initially recorded.
• B)is where transactions are posted to after they are initially recorded.
• C)serves as an index to the ledger, with each account numbered to facilitate frequent references that are made to it.
• D)is the same as a T-account, with debits on the left and credits on the right.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply, holding other factors constant.

Product Price

The cost in terms of money for buying a service or good.

Decreased Supply

A reduction in the amount of a good or service that is available for purchase in the market.

Equilibrium Price

The price point at which the supply of a good matches demand, leading to a stable market condition where there is no shortage or surplus.