On January 14, Decker Industries Purchased Supplies of $500 on Account.The

question 116

Multiple Choice

On January 14, Decker industries purchased supplies of $500 on account.The entry to record the purchase will include

• A)a debit to Supplies and a credit to Accounts Payable.
• B)a debit to Supplies Expense and a credit to Accounts Receivable.
• C)a debit to Supplies and a credit to Cash.
• D)a debit to Accounts Receivable and a credit to Supplies.

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Definitions:

Economic Profit

The contrast between earnings from outputs sold and the opportunity cost of using specific inputs.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, expressed as an annual percentage of the principal.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.