Which of the Following Entries Records the Acquisition of Office

question 156

Multiple Choice

Which of the following entries records the acquisition of office supplies for cash?

• A) Office Supplies   4,000
• Cash  4,000
• B) Office Supplies   4,000
• Accounts Payable   4,000
• C) Equipment   4,000
• Accounts Payable   4,000
• D) Equipment   4,000
• Accounts Receivable  4,000

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Definitions:

Required Return

The minimum rate of return on an investment that is necessary for it to be considered a viable option, taking into account its risk level.

IRR

In capital budgeting, the Internal Rate of Return serves as a tool for estimating the potential returns on investment projects.

Investment

The allocation of resources, usually money, into assets or projects expected to generate future returns or profit.

Profitability Index

A calculation that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.