An Accountant Has Debited an Asset Account for $2,000 and Credited

question 43

Multiple Choice

An accountant has debited an asset account for $2,000 and credited an expense account for $4,000. Which of the following would be the correct way to complete the recording of the transaction?

• A) Credit an asset account for $4,000.
• B) Credit a liability account for $2,000.
• C) Credit a shareholders' equity account for $2,000.
• D) Debit a shareholders' equity account for $2,000.

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Definitions:

Daily Sales Rate

The average amount of sales generated per day over a specific period of time.

Composite Score

A metric that combines multiple individual scores or indicators into a single overall measure.

Composite Score

An aggregated score made up of multiple individual scores or metrics to provide a comprehensive evaluation.

Holding Cost Rate

The percentage of the inventory value charged as holding cost over a specific period of time.