For Each Transaction Select the Letter of the Type of Adjustment

question 157

Multiple Choice

For each transaction select the letter of the type of adjustment that would be required
-The cost of supplies used during the current year is determined and recorded

• A)Deferred expense
• B)Deferred revenue
• C)Accrued liability
• D)Accrued asset

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Definitions:

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various price levels at a given time period.

Unit Elastic

A demand or supply situation where a percentage change in price results in an equal percentage change in the quantity demanded or supplied.

Revenue Inelastic

A situation where the revenue from a product does not significantly change with fluctuations in its price, indicating a low sensitivity to price changes.

Total Revenues

Total Revenues are the overall income generated by a company from selling goods or services before deducting any costs.