What Would Be the Effect on Accounts If the Business

question 51

Multiple Choice

What would be the effect on accounts if the business purchased office supplies for cash?

• A) An asset would be debited and an expense credited.
• B) Capital would be debited and revenue credited.
• C) An asset would be debited and revenue credited.
• D) An asset would be debited and an asset credited.

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Definitions:

EAFE

An acronym for Europe, Australasia, and Far East, representing a stock index that measures the equity market performance outside the U.S. and Canada.

European, Australian, Far East

An acronym (EAFE) referring to a major stock market index that measures the equity market performance of developed markets outside of North America.

Country Selection Return

The return attributed to the strategic selection of countries in which to invest, as opposed to stock selection or currency impact.

Benchmark

A standard or point of reference against which the performance of an investment, individual, or strategy can be measured.