Pope Accounting Service Purchased New Computers for a Total of $12,000

question 116

Multiple Choice

Pope Accounting Service purchased new computers for a total of $12,000. Pope paid $2,000 in cash and signed a note for the balance. Pope debited the Equipment account, credited the Cash account and

• A) credited an asset account for $10,000.
• B) debited the Capital account for $10,000.
• C) credited a liability account for $10,000.
• D) credited the Drawing account for $10,000.

---

Definitions:

Employment-at-will Doctrine

A legal principle that allows either the employer or the employee to terminate employment at any time without reason, as long as it is not illegal.

Contract Law

The branch of law that deals with agreements between parties, their rights, and obligations.

Tort Law

A branch of civil law dealing with situations where someone's wrongful conduct causes harm to another person, entitling the injured person to compensation.

Public Policy

Policy principles and practices considered to be in the interests of the public or the community at large.