The Proper Journal Entry to Purchase a Computer Costing $975

question 201

Multiple Choice

The proper journal entry to purchase a computer costing $975 on account to be utilized within the business would be

• A) Office Supplies 975
• Accounts Payable 975
• B) Office Equipment 975
• Accounts Payable 975
• C) Office Supplies 975
• Accounts Receivable 975
• D) Office Equipment 975
• Accounts Receivable 975

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Definitions:

Budgeted Volume

The predicted amount of work, sales, or production a company plans to achieve within a certain period, usually used for planning and performance evaluation.

Expected Sales

Projected revenue that a company anticipates earning from the sale of goods or services in a future period.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Master Budget

An all-encompassing financial plan for an organization, covering all of its operations and financial activities within a specific period.