An Accounts Payable Normally Results from Which of the Following

question 35

Multiple Choice

An Accounts Payable normally results from which of the following transactions?

• A) Purchasing accounts for cash.
• B) Purchasing property, plant and equipment on credit.
• C) Purchasing goods and services from suppliers on credit.
• D) All of these.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to market balance.

Equilibrium Quantity

The amount of goods or services that is supplied and demanded at the equilibrium price.

Price Floor

A minimum price set by the government for certain goods and services, which cannot legally be lowered.

Temporary Surplus

A short-term situation where the supply of a product or service exceeds its demand, often leading to price reductions.