The Accounts Payable Account Has Total Debit Postings of $900

question 38

Multiple Choice

The Accounts Payable account has total debit postings of $900 and credit postings of $1,500.The balance is:

• A)$2,200 debit.
• B)$600 credit.
• C)$2,200 credit.
• D)$600 debit.

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, typically set by the government to ensure affordability.

Price Floor

A government or regulatory-imposed minimum price for a good or service, intended to prevent prices from falling below a certain level.

Shortage

An instance where the need for a good or service surpasses its availability in the marketplace.

Subsidy

Financial assistance provided by government to support businesses, organizations, or individuals, often aimed at encouraging certain economic activities or reducing burdens.