The Entry to Record the Receipt of Office Equipment Previously

question 7

Multiple Choice

The entry to record the receipt of office equipment previously encumbered includes a debit to:

• A) Office Equipment.
• B) Encumbrances.
• C) Reserve for Encumbrances.
• D) both Office Equipment and Reserve for Encumbrances.

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Definitions:

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Acquisition of New Securities

The process by which a company or individual buys new stocks, bonds, or other forms of investment securities to add to their portfolio.

Early Retirement

A process where employees opt to retire before the traditional retirement age, often with specific incentives offered by employers.

Available-For-Sale Investment

A classification for investments in securities that are not classified as held-to-maturity or trading securities, with changes in their value recorded in other comprehensive income.