A Receptionist Worked One Month and Was Paid $2,000 at the End

question 112

Multiple Choice

A receptionist worked one month and was paid $2,000 at the end of the month.In transaction analysis,how does this transaction affect the accounting equation?

• A)Add $2,000 to Cash account and add $2,000 to Accounts Payable account.
• B)Add $2,000 to Accounts Receivable account and subtract $2,000 from Cash account.
• C)Add $2,000 to Salary Expense and subtract $2,000 from Retained Earnings account.
• D)Subtract $2,000 from Cash account and subtract $2,000 from Retained Earnings account.

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Definitions:

Equilibrium

The point in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Surpluses

The quantity of goods that remains when a producer has more goods than it is able to sell at the current price.

Shortages

Occurrences when the demand for a product or service exceeds its supply in a market, often leading to higher prices and unmet consumer needs.

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded, leading to a stable market situation.