Which of the Following Would Result If the Business Purchased

question 108

Multiple Choice

Which of the following would result if the business purchased supplies for cash?

• A)Supplies would increase and Cash would decrease.
• B)Supplies would increase and Capital would increase.
• C)Supplies would increase and Accounts Payable would increase.
• D)The purchase of supplies is not a business transaction.

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Definitions:

GDP Price Index

An economic metric that measures changes in the price level of all goods and services included in Gross Domestic Product.

Nominal Gross Domestic Product

a measure of a country's economic output (all goods and services produced) valued at current market prices, without adjusting for inflation.

Consumer Price Index

is a measure that examines the weighted average of prices of a basket of consumer goods and services, often used to assess inflation.

Annual Rate

Refers to the yearly interest rate or growth rate applied to investments, loans, or any financial product that calculates earnings or payments over a year.