Which of the Following Accounts Would Be Affected by the Transaction

question 116

Multiple Choice

Which of the following accounts would be affected by the transaction "purchase supplies on credit"?

• A) Office Expense and Accounts Payable
• B) Office Expense and Cash
• C) Supplies and Cash
• D) Supplies and Accounts Payable

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Definitions:

Inelastic Demand

A situation in economics where the change in the price of a good or service has little to no effect on the quantity demanded by consumers.

Total Revenue

The total amount of money a firm receives by selling goods or services.

Substitutes

Goods or services that can be used in place of each other, offering similar benefits to consumers.

Elastic Demand

A situation where the demand for a product significantly changes in response to changes in its price.