When a Business Makes a Sale on Account, the Asset

question 106

Multiple Choice

When a business makes a sale on account, the asset created is a(n) :

• A)revenue.
• B)expense.
• C)account receivable.
• D)account payable.

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Definitions:

Economy

A system of production, distribution, and consumption of goods and services in a particular geographic region.

Demand

Demand is an economic principle referring to a consumer's desire and willingness to pay a price for a specific good or service.

Supply

The total amount of a specific good or service that is available to consumers, often influenced by the price as well as other factors.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.