Which of the Following Statements Is Correct? 54)

question 121

Multiple Choice

Which of the following statements is correct? 54)

• A)Goods and services are commonly sold to customers on the basis of oral or implied promises of future payment, called promissory notes.
• B)Increases and decreases in cash are always recorded in the equity account.
• C)An account called Land is commonly used to record increases and decreases in the land and buildings owned by a business.
• D)When an insurance premium is paid in advance, the payment is normally recorded in a liability account called Prepaid Insurance.
• E)None of these statements are correct.

---

Definitions:

Elasticities of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, showing the responsiveness of consumers.

Distinct Groups

Groups characterized by clear, definable differences or boundaries in social, economic, demographic, or other relevant aspects.

Southwest Airlines

This is an American low-cost carrier known for its unique business model and customer service approach.

Passenger Traffic

The movement of passengers via modes of transportation such as air, sea, or land.