A Business Makes a Payment in Cash for Advertising Expense

question 114

Multiple Choice

A business makes a payment in cash for advertising expense. Which of the following accounts will be debited?

• A)Cash
• B)Bank
• C)Accounts Receivable
• D)Advertising Expense

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Definitions:

Lose Sales

The phenomenon of experiencing a reduction in the number of units sold or in total revenue.

Competitive Price-searcher

A market condition where businesses actively seek to determine the optimal pricing of their goods or services relative to their competitors to gain market share.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market.

Average Total Cost

The total cost of production divided by the number of goods produced, encompassing both fixed and variable costs.