When Equipment Is Purchased on Account, What Proprietary Accounts Are

question 22

Multiple Choice

When equipment is purchased on account, what proprietary accounts are debited?

• A) Equipment and Unexpended Appropriations.
• B) Capital Expenses and Unexpended Appropriations.
• C) Equipment and Appropriations Used.
• D) Equipment and Expended Appropriations.

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Definitions:

Certified Public Accountants

Licensed professionals who offer financial services such as auditing, tax preparation, and financial planning, and must adhere to professional standards.

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data and accounting information.

Proprietorships

Business entities owned by one individual, where there is no legal distinction between the owner and the business.

Partnerships

A form of business organization in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.