Use the Following Five Transactions for Monaco & Associates, Inc

question 130

Multiple Choice

Use the following five transactions for Monaco & Associates, Inc.to answer the question(s) . $$\begin{array}{lll}october&1&\text { Bills are sent to clients for services provided in September in the amount of \$ 800 .}\\&9&\text { Dravo Co. delivers office fumiture (\$ 1,060) and office supplies (\$ 160) to }\\&&\text { Monaco leaving an invoice for \$ 1,220 .}\\&15&\text { Payment is made to Dravo Co. for the furniture and office supplies delivered }\\&&\text { on October 9.}\\&23&\text { A bill for \$ 430 for electricity for the month of September is received and will }\\&&\text { be paid on its due date in November.}\\&31&\text { Salaries of \$ 850 are paid to employees.}\\\end{array}$$
-See the transactions to Monaco & Associates. The journal entry to record the October 23 transaction will include a credit of $430 to

• A) Salaries Expense
• B) Cash
• C) Prepaid Expenses
• D) Accounts Payable

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Definitions:

National Income

The total income earned by a nation's people and businesses, including wages, rent, interest, and profits.

Discretionary Fiscal Policy

involves deliberate changes by government in taxation and spending policies intended to stabilize or stimulate the economy.

Legislative Changes

Modifications or amendments made to existing laws or the introduction of new laws by a governing body or legislature.

Budget Deficit

The financial situation where an entity’s expenditures exceed its revenues.