The Purchase of Office Equipment at a Cost of $2,600

question 8

Multiple Choice

The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded in the accounts by:

• A) increasing Office Equipment for $2,600, increasing Accounts Receivable for $1,200, and increasing Accounts Payable for $1,400.
• B) increasing Accounts Receivable for $1,400, increasing Cash for $1,200, and decreasing Office Equipment for $2,600.
• C) increasing Office Equipment for $2,600, decreasing Cash for $1,200, and increasing Accounts Payable for $1,400.
• D) increasing Office Equipment for $2,600, decreasing Cash for $1,200, and decreasing Accounts Receivable for $1,400.

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Definitions:

Base-Of-The Pyramid Markets

The largest, but poorest socio-economic groups in the world, considered as potential consumers, people living on less than $2.50 a day.

Benefit Corporations

A legal structure for a business designed to prioritize social and environmental objectives in addition to profitability.

Social Goals

Objectives that focus on improving society or addressing social issues, often pursued by individuals, organizations, or governments.

Alleviate Poverty

Efforts and policies designed to reduce or eliminate poverty in a population.