Use the Following Five Transactions for Morton & Associates, Inc

question 59

Multiple Choice

Use the following five transactions for Morton & Associates, Inc. to answer the questions.
May 1 Bills are sent to clients for services provided in April in the amount of $800.
9 Techno, Inc. delivers office furniture $1,060 and office supplies $160 to Morton leaving an invoice for $1,220.
15 Payment is made to Techno, Inc. for the furniture and office supplies delivered on May 9.
23 A bill for $430 for electricity for the month of April is received and will be paid on its due date in June.
31 Salaries of $850 are paid to employees.
-See the transactions to Morton & Associates. The journal entry to record the May 15 transaction will include a decrease of $1,220 to

• A) Accounts Receivable
• B) Unearned Revenue
• C) Prepaid Expenses
• D) Accounts Payable

Analyze how consumption, saving, and income levels are interrelated through various economic models and functions.

Understand the concept of disposable income and how it relates to consumption and saving.

Calculate induced consumption from given levels of disposable income.

Define and explain autonomous consumption.

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Definitions:

Foreign Goods

Products or services that are produced in one country and sold in another, outside the country of origin.