A Company Reported the Following Information: Assuming All Merchandise

question 40

Multiple Choice

A company reported the following information: Assuming all merchandise purchases were on account, how much cash was paid to suppliers for merchandise purchases during 2020?

• A)$1,005,000
• B)$1,050,000
• C)$ 995,000
• D)$1,020,000

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Definitions:

Buyers

Individuals or organizations that purchase goods or services for personal use or for resale.

Sellers

Individuals or entities that offer goods or services for sale in the marketplace.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied.

Excess Demand

Excess demand occurs when the quantity demanded of a product or service exceeds the quantity supplied at the current price, leading to shortages.