The Entry to Record a Monthly Payment on an Installment

question 82

Multiple Choice

The entry to record a monthly payment on an installment note such as a car loan:

• A)Increases expense,decreases liabilities,and decreases assets.
• B)Increases expense,increases liabilities,and increases assets.
• C)Increases expense,decreases liabilities,and increases assets.
• D)Increases expense,increases liabilities,and decreases assets.

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Definitions:

Perfectly Competitive Firm

A hypothetical business in a market where no single company can influence the market price or product quality, leading to an efficient allocation of resources.

Short Run

A period in economics during which at least one factor of production is fixed, limiting the ability to increase production in response to increased demand.

Profitable

A financial status where the income generated from business activities exceeds the expenses, taxes, and costs associated with maintaining the business.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product or service.