A Business Receives a Bill from One of Its Suppliers

question 57

Multiple Choice

A business receives a bill from one of its suppliers for services received. The business will pay the supplier next month. How does the receipt of the bill from the supplier affect the accounting equation of the business?

• A)Assets decrease; equity decrease.
• B)Liabilities increase; equity decrease.
• C)Assets increase; liabilities increase.
• D)Liabilities increase; equity increase.

Analyze and solve problems related to the sales mix and its impact on company profitability.

Understand the concept of break-even analysis in units and dollars.

Calculate and interpret the effect of advertising and sales commissions on net operating income.

Understand and apply the concept of margin of safety in both dollars and as a percentage.

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Definitions:

Management Fixated

Refers to an organizational focus predominately on management perspectives, often at the expense of considering employee viewpoints or other stakeholder interests.

Structural Power

The ability of a group or institution to shape societal structures, norms, and policies through its control over economic resources, political influence, or social relationships.

Bargaining Power

The capacity of one party, such as a labor union or an employer, to influence the terms of an agreement during negotiations.

Union

An organized association of workers formed to protect and further their rights and interests; typically involved in collective bargaining and labor negotiations.