During April, Tempe Corp

question 34

Multiple Choice

During April, Tempe Corp. paid $4,000 on account for supplies that were purchased, recorded, and used during March. In recording this transaction, Tempe will

• A) debit Accounts Payable and credit Cash.
• B) debit Shareholders' equity and credit Accounts Payable.
• C) debit Supplies Expense and credit Accounts Payable.
• D) accrue an expense of $4,000.

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Definitions:

Trade Deficit

An economic measure of a negative balance of trade where a country's imports exceed its exports.

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports, indicating a positive balance of trade.

Net Exports

The difference between a country’s total exports of goods and services and its total imports of them. Positive net exports indicate a trade surplus, while negative net exports indicate a trade deficit.

Chinese Currency

The official currency of China, known as the Renminbi (RMB) or commonly referred to as the Yuan (CNY).