When a Cash Disbursement in Payment of an Accounts Payable

question 60

Multiple Choice

When a cash disbursement in payment of an accounts payable is recorded

• A)the liability account is increased
• B)the income statement is changed
• C)the cash account is unchanged
• D)the liability account is decreased

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Definitions:

Exchange Equilibrium

Exchange equilibrium refers to a state in a market where the supply of goods is equal to the demand for goods, resulting in no excess supply or demand.

Perfect Competition

A market structure characterized by an infinite number of buyers and sellers, homogenous products, and no barriers to entry or exit, leading to price takers rather than price makers.

Efficiency

The ability to achieve a desired result or work output with minimum wasted effort or expense.

Equity

A measure of ownership in a company or asset, typically represented by shares that entitle holders to a proportion of the company's profits.