A Business Has the Following Transactions: the Business Receives $16,000 $$\begin{array} { r | l l } 3,000 & 14,000 & \\\hline & 11,000 \quad \text { Bal. }\end{array}$$

question 73

Multiple Choice

A business has the following transactions: The business receives $16,000 cash and issues common stock to stockholders.
The business purchases $500 of office supplies on account.
The business purchases $1,000 of furniture on account.
The business performs services for various clients totaling $14,000 on account.
The business pays $3,000 for salaries expense and $5,000 for rent expense.
The business pays $500 to a supplier for the office supplies purchased earlier.
The business collects $3,000 from one of its clients for services rendered earlier in the month.
At the end of the month, all journal entries are posted to the ledger. Accounts Receivable will appear as which of the following?

• A) Accounts Receivable \[\begin{array} { r | l l }
• 3,000 & 14,000 & \\
• \hline & 11,000 \quad \text { Bal. }
• \end{array}\]
• B) Accounts Receivable \[\begin{array} { l l | l }
• & 14,000 & \\
• \hline \text { Bal. } & 14,000 &
• \end{array}\]
• C) Accounts Receivable \[\begin{array} { l l | l }
• & 14,000 & 3,000 \\
• \hline \text { Bal. } & 11,000 &
• \end{array}\]
• D) Accounts Receivable \[\begin{array} { r | r r }
• 14,000 & 3,000 & \\
• \hline & 11,000 \quad \text { Bal. }
• \end{array}\]

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Definitions:

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services that are supplied matches the amount that is demanded.

Equilibrium Price

The market price at which the quantity demanded of a good equals the quantity supplied, leading to a state of balance in the market.

Government Subsidy

Financial assistance provided by the government to businesses, individuals, or other governmental units in support of an activity deemed beneficial to the public.

Supply

The total amount of a product or service that is available to consumers, determined by factors such as price, production costs, and market demand.