An Accountant Has Debited an Asset Account for $1,200 and Credited

question 6

Multiple Choice

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

• A) Nothing further must be done.
• B) Debit a Stockholders' equity account for $700.
• C) Debit another asset account for $700.
• D) Credit a different asset account for $700.

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Definitions:

Quantity of Gold Bars

The total number or weight of gold bars held or transacted.

Renewable Natural Resource

A resource that can replenish itself naturally over time, such as solar energy, wind, and biomass.

Aquifers

Underground layers of water-bearing permeable rock or materials through which groundwater can be extracted using a well.

Renewable Natural Resources

Things such as forests, water in reservoirs, and wildlife that are capable of growing back or building back up (renewing themselves) if they are harvested at moderate rates.