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.

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Definitions:

Personal Property

Property that is movable; any property that is not real property; sometimes called personalty or chattel.

Economically Injurious Falsehood

A false statement made about a business or product that causes financial harm, also known as trade libel.

Disparagement of Property

Making false and damaging statements about someone's property or business practices, which may result in financial loss.

Legally Recognized Injury

A wrong or damage suffered by an individual which is identified and acknowledged under the law for purposes of compensation or remedy.