If the Accounts Payable Subsidiary Ledger Shows the Following Balances

question 2

Multiple Choice

If the accounts payable subsidiary ledger shows the following balances on 31 July 2011,what is the balance in the accounts payable control account on the same date? Assuming recording and balancing of accounts payable records are up to date.
$\begin{array} { l l r } \text { - } & \text { Wilson } & \$ 4000 \\\text { - } & \text { Watson } & \$ 15250 \\\text { - } & \text { Zhang } & \$ 8750\end{array}$

• A)$0
• B)$28 000 Cr
• C)$28 000 Dr
• D)Cannot be calculated

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Definitions:

Production Possibilities

Different combinations of goods and services that an economy can produce efficiently with its available resources and technology.

Diminishing Returns

The principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Marginal Product

The increase in output resulting from a one-unit increase in the input of a production factor, holding all other inputs constant.

Marginal Product

The additional output resulting from one more unit of a given input, holding all other inputs constant.