Palladia Publishing Paid $450 for an Advertisement That Will Appear $\begin{array}{lll}\text { } & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Cash } & 450 & \\\text { Prepaid Advertising } & &450\\\end{array}$

question 106

Multiple Choice

Palladia Publishing paid $450 for an advertisement that will appear in today's newspaper.Which of the following is the journal entry to record this transaction?

• A)\(\begin{array}{lll}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Cash } & 450 & \\
• \text { Prepaid Advertising } & &450\\
• \end{array}\)
• B)\(\begin{array}{lll}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Advertising Expense } & 450 & \\
• \text { Cash } & &450\\
• \end{array}\)
• C)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Advertising Expense } & 450 & \\
• \text { Prepaid Advertising } & &450\\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Cash } & 450 & \\
• \text { Advertising Expense } & &450\\
• \end{array}\)
• E)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text { Advertising Expense } & 450 & \\
• \text { Cash } & &450\\
• \end{array}\)

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Definitions:

Circular Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms.

Households

Economic units that consist of all individuals who live together in one dwelling, making joint decisions about consumption and labor.

Circular Flow Model

An economic model illustrating the continuous movement of money, goods and services, and factors of production between producers and consumers in an economy.

Interdependence

Interdependence is a condition where entities are mutually reliant on each other, implying that actions of one can significantly impact the others.