Busy Beaver,Inc

question 201

Multiple Choice

Busy Beaver,Inc.signed a $315,000,5-year note payable to buy a new industrial veneer cutter.Busy Beaver paid $5,000 cash for transportation of the machine and $750 cash for installation costs.What is the overall effect of this transaction on the accounting equation?

• A) Total liabilities increase $320,750.
• B) Total assets increase $309,250.
• C) Machinery, an asset, increases $315,000.
• D) Total liabilities increase $315,000.

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Definitions:

Dielectric Constant

A method of determining the insulation properties of a dielectric using air as a reference.

Rated Value

Rated value indicates the maximum or nominal performance specification for which a device or component is designed, such as voltage, power, or temperature.

HIPOT Test

A type of electrical safety test designed to verify the insulation of electric devices and components by applying high voltage to ensure no breakdown occurs.

Capacitor Tolerance

The permissible variation in capacitance from its nominal value, expressed as a percentage, which defines the range within which the actual capacitance can vary.