The General Journal Entry to Record the Purchase of an Asset

question 134

Multiple Choice

The general journal entry to record the purchase of an asset on account would include

• A) a debit to Accounts Receivable and a credit to Fees Earned.
• B) a debit to Equipment and a credit to Accounts Payable.
• C) a debit to Accounts Payable and a credit to Equipment.
• D) a debit to Supplies and a credit to Cash.

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Definitions:

Quality Cost Report

A document that outlines the expenses associated with preventing, detecting, and correcting defective work or products.

Prevention Cost

Expenses incurred to avoid defects in products or services.

Quality Cost Report

A document that outlines the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.

Appraisal Cost

The expenses associated with ensuring quality and compliance of products or services, including testing, inspections, and audits.