An Asset Would Be Debited and Another Asset Credited If

question 67

Multiple Choice

An asset would be debited and another asset credited if:

• A) the business bought supplies for cash.
• B) the business incurred an expense and paid it.
• C) the business bought equipment on account.
• D) None of these is correct.

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Definitions:

Assumption of Risk

A legal principle that a person who voluntarily engages in an activity is aware of and accepts the hazards associated with that activity.

Premises Liability

A legal principle that holds property owners and residents liable for accidents and injuries that occur on their property, depending on the legal status of the visitor.

Pure Contributory Negligence

A legal doctrine where a damaged party cannot recover any damages if they are found to be even slightly at fault.

Mixed Contributory

"Mixed Contributory" could refer to scenarios involving mixed contributory negligence, where multiple parties are found to be at fault in varying degrees for a particular incident or loss, but without more context, the precise definition can vary.