A Business Pays Cash Back to the Owner

question 69

Multiple Choice

A business pays cash back to the owner.Which account is credited?

• A) Cash
• B) Drawing
• C) Accounts payable
• D) Service Revenue

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Definitions:

Purely Competitive

A market scenario where all participants sell indistinguishable goods, ensuring no one seller can influence prices, creating an ideal competition.

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the good all producers are willing to supply.

Remaining Firms

Businesses that continue to operate in a market after others have exited, often due to competitive advantages or niches.

Invisible Hand

A metaphor introduced by Adam Smith to describe how individual self-interest in a free-market economy leads to economic well-being and efficiency as if by an invisible hand guiding them.