An Accountant Has Debited an Asset Account for $1,200 and Credited

question 65

Multiple Choice

An accountant has debited an asset account for $1,200 and credited a liability account for $500.What can be done to complete the recording of the transaction?

• A)Nothing further must be done.
• B)Debit a Stockholders' equity account for $700.
• C)Debit another asset account for $700.
• D)Credit a different asset account for $700.

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Definitions:

Legislative Action

The process by which a legislative body enacts laws, including the proposal, debate, amendment, and voting on new laws or changes to existing laws.

President

The head of state and/or head of government in a republic, typically elected to be the chief executive officer and hold the highest office in the land.

Multiplier

An economic factor that quantifies the additional economic activity generated from an initial injection of spending.

Equilibrium Real GDP

is the level of Gross Domestic Product where aggregate demand equals aggregate supply, resulting in a stable economy without inflationary or recessionary gaps.