Homeward Supply Services Received $1,000 Cash from a Customer;the Amount

question 32

Multiple Choice

Homeward Supply Services received $1,000 cash from a customer;the amount was owed to the business from the previous month.Which of the following accounts will decrease as a result of this transaction?

• A)Cash
• B)Revenue
• C)Accounts Payable
• D)Accounts Receivable

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Definitions:

Equilibrium Price

The equilibrium price where the supply of goods meets consumer demand.

Horizontal Supply Curve

Represents a market situation where the supply of a good is perfectly elastic, indicating the supplier is willing to sell any quantity at a fixed price.

Linear

A straight-line relation in mathematics that expresses a constant rate of increase or decrease between variables.

Deadweight Loss

A loss in economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.