Margo Orders a MacBook Pro Computer from the Apple Store

question 191

Multiple Choice

Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

• A) As a flow of a factor of production
• B) As a flow of goods and services bought
• C) As expenditures on goods and services
• D) As goods and services supplied
• E) It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods, ensuring that revenues and expenses are matched.

Accumulated Depreciation

The complete value of a physical asset's price that has been charged as an expense from the time the asset started being utilized.

Contra Asset Account

A type of account that reduces the total value of a related asset account on a company's balance sheet.

Asset-Expense Relationship

The correlation between a company's assets and expenses, indicating how asset utilization incurs costs.