Which Is the Best Explanation for This Journal Entry?
A)

question 100

Multiple Choice

$$\begin{array} { | c | l | c | l | l | l | } \hline \text { April } & 14 & \text { Equipment } & & 15,000 & \\\hline & & \text { Cash } & & & 5,000 \\\hline & & \text { Note Payable } & & & 10,000 \\\hline & & ? ? ? ? ? ? ? ? ? ? ? & & & \\\hline\end{array}$$ Which is the best explanation for this journal entry?

• A) Purchased equipment; paid cash of $5,000, with the remainder to be paid in the future.
• B) Purchased equipment; paid cash of $10,000, with the remainder to be received in the future.
• C) Purchased equipment with cash.
• D) Purchased equipment on account.

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Definitions:

Competitive Edge

A distinct advantage that allows an organization to outperform its competitors.

Cost Leadership

A business strategy aiming to achieve the lowest operational costs within an industry, enabling the company to offer lower prices than competitors and gain market share.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones due to positive experiences and satisfaction.

Differentiation

Refers to the process of distinguishing a product, service, or brand from competitors in ways that appeal to the customer, creating a perceived value over alternatives.