-Refer to Exhibit 4-3

question 30

Multiple Choice

-Refer to Exhibit 4-3.Which of the following is true?

• A) If price P₃ is set as a price ceiling it will have an effect on the market for good X.
• B) If price P₃ is set as a price floor it will have an effect on the market for good X.
• C) Price P₃ is the equilibrium price for good X.
• D) Price P₃ is the highest price that can legally be charged in the market for good X.

---

Definitions:

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services received but not yet paid for.

Common Stock

Equity securities that represent ownership interests in a corporation, providing voting rights and potential dividends to shareholders.

Recording Process

The systematic method of documenting business transactions in the accounting records in a chronological order.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the general ledger.