Which of the Following Would Result If the Business Purchased

question 108

Multiple Choice

Which of the following would result if the business purchased supplies for cash?

• A)Supplies would increase and Cash would decrease.
• B)Supplies would increase and Capital would increase.
• C)Supplies would increase and Accounts Payable would increase.
• D)The purchase of supplies is not a business transaction.

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Definitions:

Perfected

The state of a security interest when the secured party has done everything that the law requires to give the secured party greater rights to the goods than others have.

Attaches

In legal parlance, attaches means to legally seize or take control of property, often in the context of securing a debt or executing a court order.

Equity Of Redemption

The right of a mortgagor to reclaim property by paying off the full amount of the mortgage plus any accrued interest and costs before foreclosure.

Home Equity Loan

A line of credit made available to homeowners based on the value of the property over and above any existing mortgages.