Which of the Following Would Result If a Business Purchased

question 63

Multiple Choice

Which of the following would result if a business purchased Equipment with a 40% down payment and the rest on open account?

• A) Equipment would increase and Cash would decrease.
• B) Accounts Payable would increase.
• C) Since the equipment has not been paid in full, there is nothing to record.
• D) Both A and B are correct.

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Definitions:

Rental Units

Housing units, such as apartments or houses, that are available for rent to tenants.

Surplus

A situation where the quantity supplied of a good exceeds the quantity demanded at a given price.

Price Ceiling

A legal maximum price that can be charged for a good or service, typically set by government regulation.

Shortage

A situation where the demand for a good or service exceeds the supply available at a specific price.