Which of the Following Accounts Would Normally Increase with an Increase

question 70

Multiple Choice

Which of the following accounts would normally increase with an increase in sales and approximately in proportion to the sales increase?

• A) Common stock
• B) Inventory
• C) Notes payable
• D) Dividends

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Definitions:

Human Specialization

The process whereby individuals focus on a narrow area of skill or knowledge, increasing efficiency and productivity in the workforce.

Society's Output

This term describes the total amount of goods and services produced by a society or an economy over a specific time frame.

Self-Interest

The motivation of individuals to pursue their own welfare and interests, often considered a fundamental economic driving force.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, determining prices of goods and services.