The Journal Entry to Record the Purchase of Supplies on Account

question 87

Multiple Choice

The journal entry to record the purchase of supplies on account includes a debit to:

• A)Supplies and a credit to Accounts Payable.
• B)Supplies and a credit to Cash.
• C)Supplies Expense and a credit to Accounts Payable.
• D)Supplies Expense and a credit to Cash.

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Definitions:

Monopolistic Competition

An economic setup in which several companies offer products that are closely related but not exactly the same, granting them a certain level of influence over the market.

Nash Equilibrium

The situation that occurs in some simultaneous games wherein every player is playing his or her dominant strategy at the same time and thus no player has any reason to change behavior.

First-Mover Advantage

In game theory, the benefit obtained by the party that moves first in a sequential game. A situation that occurs in a sequential game if the player who gets to move first has an advantage in terms of final outcomes over the player(s) who move subsequently.

Simultaneous Game

A strategic interaction (game) between two or more parties (players) in which every player moves (makes a decision) at the same time.