A Competitive Market That Allocates Funds to Their Most Productive

question 100

Multiple Choice

A competitive market that allocates funds to their most productive use is called

• A) an investor's market.
• B) an efficient market.
• C) a middleman's market.
• D) a liquid market.

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Definitions:

Purchases Discount

A contra-cost account in the general ledger that records discounts offered by vendors of merchandise for prompt payment of purchases by buyers.

Merchandise

Goods brought into a store for resale to customers.

Purchase Discounts

Reductions in price given by a supplier to a buyer for early payment within a specified period.

Purchase Discounts Lost

The additional expense a company incurs when it fails to take advantage of discounts offered by suppliers for early payment.