Figure 3-2 -Refer to Figure 3-2.A Decrease in the Price of Inputs

question 164

Multiple Choice

Figure 3-2
-Refer to Figure 3-2.A decrease in the price of inputs would be represented by a movement from

• A)A to B.
• B)B to A.
• C)S1 to S2.
• D)S2 to S1.

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Definitions:

T-account

A visual representation used in accounting to depict the debit and credit sides of an account.

Debits

Financial transactions representing increases in assets or expenses or decreases in liabilities, equity, and income.

Credits

Entries made in the accounting records to increase liabilities or revenues, or to decrease assets or expenses.

Accounts Payable

Liabilities representing amounts owed by a company to suppliers or creditors for goods and services received.