Zetom Company Receives a Bill from One of Its Suppliers

question 165

Multiple Choice

Zetom Company receives a bill from one of its suppliers for services received and will pay the supplier next month.How does the receipt of the bill from the supplier affect the accounting equation of Zetom?

• A)assets and equity decrease
• B)liabilities increase and equity decreases
• C)assets and liabilities increase
• D)liabilities and equity increase

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Definitions:

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Output

The total amount of goods and services produced by an economy, company, or industry within a specific period.

Long-Run Supply Curve

A graphical representation showing the relationship between price and the quantity supplied that firms are willing to produce, given all inputs are variable.

Output

The cumulative quantity of products or services generated by a corporation, sector, or economic system.