Select the Account That Would Be Increased to Show Each

question 170

Multiple Choice

Select the account that would be increased to show each of the following costs.
-The costs paid to clear land

• A)Land
• B)Land Improvements
• C)Buildings
• D)Machinery and Equipment
• E)An Expense Account

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Definitions:

General Journal Entry

A record in the general journal that represents the detailed listing of a company's financial transactions.

Terms 2/10, N/30

Payment terms indicating a 2% discount if the amount is paid within 10 days; otherwise, the net (full) amount is due within 30 days.

Perpetual Inventory Method

An accounting method that continuously tracks inventory levels and cost of goods sold, updating the accounts after each transaction.

General Journal Entry

A record in the general journal that represents a transaction and shows the accounts and amounts debited and credited.