Assume a Firm Has Paid an Invoice for Merchandise It

question 29

Multiple Choice

Assume a firm has paid an invoice for merchandise it purchased earlier and the appropriate data have been entered in the cash disbursements transaction file. Data from the cash disbursements transaction file have been transferred to the general journal transaction file. What is the result if a trial balance is prepared at this point?

• A) Accounts payable shows a decrease, and cash shows an increase
• B) Accounts payable shows no change and cash shows no change
• C) Accounts payable shows a decrease, and cash shows a decrease
• D) Accounts payable shows an increase, and cash shows an increase

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Definitions:

Output

The total amount of goods or services produced by a company, sector, or economy within a specific time period.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.

Fixed Cost

refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Cell Phones

Portable electronic devices that allow for telecommunication over a network of stations without the need for a physical connection to a telephone line.