What Would Be the Effect on the Accounts If the Business

question 61

Multiple Choice

What would be the effect on the accounts if the business purchased equipment on account?

• A) An asset would be debited and an expense debited.
• B) Expense would be debited and Liability credited.
• C) An asset would be debited and Liability debited.
• D) An asset would be debited and a Liability credited.

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Definitions:

Flexible Budget

A budget that adjusts or scales according to the actual level of activity or volume of production, helping companies better manage costs and resources.

Patient-Visits

The number of encounters or visits made by patients to a healthcare provider or facility within a specified period.

Revenue And Spending Variances

Differences between the actual and budgeted amounts on both the revenue side and the expenditure side, indicating the financial performance over a certain period.

Customers Served

The number of customers that have been provided with products or services by a business during a specific time period.