The Account That Is Credited for Every Transaction Entered in the Purchases

question 18

Multiple Choice

The account that is credited for every transaction entered in the purchases journal is:

• A)cash.
• B)accounts payable.
• C)accounts receivable.
• D)sales discounts.

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Definitions:

Voluntary Exchange

An economic transaction where all parties involved agree to the trade, believing they will benefit from the exchange.

Relative Scarcity

The economic concept referring to the limited availability of resources in comparison to the unlimited wants and needs of consumers.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, creating a market balance.

Equilibrium Quantity

The supply of goods or services equals the demand for them at the price where the market is in equilibrium.