A Debit Balance in Which of the Following Accounts Would

question 107

Multiple Choice

A debit balance in which of the following accounts would likely indicate an error?

• A) Salaries Expense
• B) Notes Payable
• C) Edgar Martin, Drawing
• D) Supplies

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Definitions:

Excess Quantity

The situation where the supply of a product exceeds the demand for it at a specific price point, leading to a surplus.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved.

Market Equilibrium

The state in which the supply and demand for a good or service are balanced, leading to a stable price.

Consumer Surplus

The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.