The Equilibrium Quantity Is

question 201

Multiple Choice

The equilibrium quantity is

• A)the amount exchanged at the equilibrium price.
• B)an amount higher than consumers were wanted to buy.
• C)an amount lower than producers wanted to sell.
• D)always less than the equilibrium price.

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Definitions:

Terms 2/10, N/30

A payment term indicating that a buyer can take a 2% discount on the invoice amount if the payment is made within 10 days; otherwise, the full invoice amount must be paid within 30 days.

Perpetual Inventory Method

The perpetual inventory method is a system of accounting for inventory that continuously updates the quantity and value of inventory items after every transaction.

Journalize

The act of recording transactions in the accounting journals as part of the bookkeeping process.

Terms 2/10, N/30

Payment terms indicating a 2% discount if paid within 10 days, otherwise the net amount (total invoice) is due within 30 days.