Using the Following Accounts

question 1

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transactions.
-Issued bonds at a value above face value in exchange for land.
Debit ________ Credit ________ & ________

• A)Cash
• B)Bond Sinking fund
• C)Equipment
• D)Building
• E)Land
• F)Accounts payable
• G)Notes payable
• H)Bond payable
• I)Bond interest payable
• J)Premium on bonds payable
• K)Discount on bonds payable
• L)Common stock
• M)Retained earnings
• N)Sinking fund earned
• O)Bond interest expense
• P)Gain on retirement
• Q)Loss on retirement

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Definitions:

Budget Line

The budget line represents the combinations of two goods that a consumer can purchase with a given budget, taking into account the prices of the goods.

Consumer Preference

Individuals' or groups' choices and priorities regarding products, services, or other consumption activities.

Indifference Curves

Graphical representations in economics, showing combinations of goods between which a consumer is indifferent, implying the same level of satisfaction or utility.

Consumption Choice

This refers to the selection of a combination of goods and services that individuals or households decide to consume based on their preferences, income, and prices.