Junction Company Had the Following Transactions,among Others,during August

question 30

Multiple Choice

Junction Company had the following transactions,among others,during August.Which transaction represented an expense during August?

• A) It paid $3300 in settlement of a loan obtained 3 months earlier.
• B) It paid $500 for advertising performed in June.
• C) It purchased $500 of repairs on account for the delivery truck,account will be paid during September.
• D) It paid dividend to shareholders.

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Definitions:

Social Regulation

Rules and policies designed to correct market failures that affect people's health, safety, welfare, and social wellbeing.

Administrative Costs

Administrative Costs are expenses related to the general operation of a business, including expenses such as office supplies, salaries of non-production employees, and legal and accounting services.

Compliance Costs

Expenses that businesses incur to adhere to industry regulations, standards, and laws, including the costs of implementing necessary procedures and reporting.

Horizontal Price-fixing

An illegal agreement between competitors to fix, raise, or lower prices of goods or services at a certain level, stifling competition.