The Balance in Jordan Co

question 84

Multiple Choice

The balance in Jordan Co.'s accounts payable account at December 31, 2010 was $600,000 before any necessary year-end adjustments relating to the following: In Jordan's December 31, 2010 balance sheet, the accounts payable should be

• A)$680,000
• B)$675,000
• C)$650,000
• D)$630,000

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market price.

Normal Good

A normal good is a type of good for which demand increases as the income of individuals increases.

Equilibrium Price

The rate at which the product's supply equals its demand in the market.

Equilibrium Quantity

At the prevailing market price, the supply of goods or services is exactly the same as the demand for them.