The Purchase of a Building with a Cash Down Payment

question 15

Multiple Choice

The purchase of a building with a cash down payment and a written promise to pay the balance in the future would include a:

• A) credit to Cash and a credit to Note Payable
• B) debit to Note Payable and a credit to Cash
• C) debit to Cash and a credit to Buildings
• D) debit to Cash and a debit to Note Payable

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Definitions:

Balance of Trade

The variation in worth between what a country buys from and sells to other countries during a specific time frame.

Electricity

A form of energy resulting from the existence of charged particles, widely used for lighting, heating, and powering machines and devices.

1920s

A decade characterized by economic prosperity and cultural flourishing in the United States, also known as the "Roaring Twenties."

Stock Market

A public marketplace where stocks, bonds, and other securities are bought and sold.