What Would Be the Effect on the Accounts If the Business

question 103

Multiple Choice

What would be the effect on the accounts if the business received the telephone bill but did not pay it immediately?

• A)An expense would be debited and a liability credited.
• B)Capital would be debited and Revenue credited.
• C)An expense would be debited and an asset credited.
• D)An asset would be debited and Capital credited.

Recognize the potential effects of far-sighted consumer behavior on policy effectiveness.

Understand the concept of political business cycles and the role of monetary policy within these cycles.

Describe the benefits and costs associated with low levels of inflation and the rationale behind targeting zero inflation.

Identify the Federal Reserve's legally mandated goals and the challenges of balancing these objectives.

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Definitions:

Secondary Drive

A learned motivation derived from the fulfillment of a primary drive or through its association with primary drives, such as money for food.

Great Wealth

An abundance of valuable financial assets or physical possessions which surpasses the norm or average.

Achievement

The successful accomplishment of a task or goal, often recognized by some form of reward or acknowledgment.

David McClelland

A psychological theorist known for his work on motivation, particularly regarding the needs for achievement, power, and affiliation.