The Following Transactions,among Others,occurred During February

question 60

Multiple Choice

The following transactions,among others,occurred during February.Which transaction represented an expense during February?

• A) Purchased a computer for $3000 cash.
• B) Paid $3300 in settlement of a loan obtained three months earlier.
• C) Paid $500 to a garage mechanic for automobile repair work performed in December.
• D) Purchased $400 of petrol on account for the delivery trucks.Account will be paid during March.

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Definitions:

Rival in Consumption

A good is termed a rival in consumption if its use or consumption by one individual prevents its use or consumption by another individual.

Excludable

A characteristic of a good or service that allows owners to prevent its use by people who have not paid for it.

Private Markets

Markets in which transactions are conducted directly between parties, often involving assets not publicly traded, such as private equity and real estate.

Lighthouses

Towers equipped with navigational lights and other signaling equipment designed to guide ships and warn them of hazards at sea or along coastlines.