The General Journal Entry to Record the Purchase of an Asset

question 35

Multiple Choice

The general journal entry to record the purchase of an asset for cash 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:

Economic Impact

The effect of an event, policy, or market change on the economy, which can be measured in terms of changes in employment, GDP, or other economic indicators.

Apartments

Living spaces within a building or complex, typically rented, that provide residential accommodation.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Nonprice Rationing

The allocation of goods or services using criteria other than price, such as waiting lists or lotteries.