The Following Are Selected Current Month's Balances for Morgan Company

question 29

Multiple Choice

The following are selected current month's balances for Morgan Company. $$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 8,000 \\\hline \text { Revenue } & 12,000 \\\hline \text { Cash } & 6,450 \\\hline \text { Expenses } & 1,300 \\\hline \text { Furniture } & 11,000 \\\hline \text { Accounts Receivable } & 14,000 \\\hline \text { Morgan, Capital } & 7,250 \\\hline \text { Notes Payable } & 5,500 \\\hline\end{array}$$ Based on this information,calculate the total amount of credits for the trial balance.

• A) $25,500
• B) $20,750
• C) $24,750
• D) $32,750

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Definitions:

Government Spending

Refers to the expenditure by government bodies on goods and services, including investments, infrastructure, and payments for social services.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenses.

Federal Funds Rate

The interest rate charged in the federal funds market; the interest rate banks charge one another for overnight borrowing; the Fed’s target interest rate.

Fiscal Policy

Involves government policies on taxation and spending that aim to influence a country's economic conditions, such as controlling inflation, unemployment, and promoting economic growth.