The Liability Created by a Business When It Purchases Coffee

question 109

Multiple Choice

The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n)

• A)account payable.
• B)account receivable.
• C)revenue.
• D)expense.

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Definitions:

Output

The quantity of goods or services produced within a given timeframe by a firm, industry, or country.

Economy

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Short-run Equilibrium

A state in which supply and demand are balanced, prices are stable, and there's no tendency for change in the short term.

Aggregate Supply

The comprehensive stock of goods and services intended for sale by firms within an economy throughout a certain duration.