What would be the effect on the accounts if the business purchased equipment on account?
OA. An asset would be debited and a Liability credited.
OB. An asset would be debited and Liability debited.
Oc. An asset would be debited and an expense debited.
OD. Expense would be debited and Liability credited.

Answers

Answer 1

Answer:

A. An asset would be debited and a Liability credited.

Explanation:

Purchasing on account means buying on credit. The debts of the business increase. As a result,  liabilities increase.

Equipment is a business asset. Purchasing equipment increases assets.

In the double-entry accounting system, An increase in an asset is recorded by debiting the asset account. An increase in liabilities is captured by crediting the liabilities account.


Related Questions

Temperature at 8:00 A.M.: -15°C.
Temperature rose 8°C during the
next hour. What was the
temperature at 9:00 AM ?

Answers

-7°celcius is the answer man

which of these is an example of personification?
a) a metaphor using household items
b) a word that rhymes with unification
c) a stone that talks to people
d) a conversation with a dead person

Answers

Answer:

c) a stone that talks to people

Explanation:

Personification is giving human qualities and traits such as speech, emotions, desires, and gestures to non-living things. Personification features prominently in animation films, visual arts, poetry, and literature.

Other examples of personification are

The sun smiled back at me.The alarm clock screamed at them.

Linda purchased a washing machine and dryer set for $1,299 on a deferred payment plan. She needs to pay $80
per month for 6 months and the remaining balance in month 7. How much will Linda pay back in 6 months, and
what will the amount of her final payment be?

HELP PLEASE

Answers

Answer:

In six months, Linda will pay : $480

Final payments :$819

Explanation:

The monthly payments are $80 for six months.

For six months, Linda will have paid $80 times six months

=$80 x 6

=$480

The amount for her final payments will be the total of the two items  minus the installment payments

=$1,299 - $480

=$819

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