Martin Supply Service Received $1,000 Cash from a Customer Which

question 79

Multiple Choice

Martin Supply Service received $1,000 cash from a customer which was owed to the business from the previous month. Which of the following accounts would decrease as a result of this transaction?

• A)Cash
• B)Equity
• C)Accounts Payable
• D)Accounts Receivable

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Definitions:

Average Price Level

An index that summarizes the overall movement in prices for goods and services in an economy over a period of time.

Interest Rates

The percentage of a loan amount charged by the lender to the borrower for the use of money, expressed as an annual percentage.

Consumption

The use of goods and services by households or individuals for personal needs or enjoyment, as opposed to investment or production purposes.

Supply of Savings

The total amount of savings that individuals and institutions are willing to lend or invest, available in the economy.