Which of the Following Entries Records the Acquisition of Office

question 183

Multiple Choice

Which of the following entries records the acquisition of office supplies on account?

• A) Office Supplies, debit; Cash, credit
• B) Cash, debit; Office Supplies, credit
• C) Office Supplies, debit; Accounts Payable, credit
• D) Accounts Receivable, debit; Office Supplies, credit

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Definitions:

Common Stock

Equity ownership in a corporation, with rights to share in its profits and vote in company decisions.

Historical Cost Principle

An accounting principle that states assets should be recorded and reported at their original purchase cost.

Brokerage Fees

Charges levied by brokers for facilitating transactions between buyers and sellers in the financial markets.

Investment

The allocation of resources, typically money, into assets or projects with the expectation of generating income or profit.