A Business Makes a Cash Payment of $12,000 to a Creditor.Which

question 144

Multiple Choice

A business makes a cash payment of $12,000 to a creditor.Which account is debited?

• A) Cash
• B) Accounts payable
• C) Service revenue
• D) Accounts receivable

---

Definitions:

Satisfaction

The feeling of pleasure or fulfillment that comes from meeting one's needs or expectations.

Real Wages

Wages adjusted for inflation, reflecting the actual purchasing power of income.

Opportunity Cost

Opportunity cost represents the value of the best alternative that must be forgone as a result of choosing a particular action or decision over others.

Labor-saving Devices

Tools, machines, or systems that reduce the amount of labor needed to perform a task or produce a good.