Which of the Following Journal Entries Is Correct When a Business

question 37

Multiple Choice

Which of the following journal entries is correct when a business entity builds an addition to the factory building by paying cash to a contractor?

• A) Retained Earnings
• \( \quad \)Cash
• B) Building
• \( \quad \) \( \quad \)Contributed Capital
• C) Cash
• \( \quad \)Building
• D) Building
• \( \quad \)Cash

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Definitions:

Product Guarantees

Promises made by the seller or manufacturer about the quality or lifespan of a product, providing assurance to the buyer.

Salesperson's Presentation Mix

A salesperson's presentation mix involves the combination of verbal communication, visual aids, demonstrations, and personal selling techniques used to effectively engage and persuade a potential customer.

Proof

Evidence or argument establishing a fact or the truth of a statement or proposition.

Conviction

In the conviction step of the prospect’s mental buying process, the salesperson should strive to develop a strong belief that the product is best suited to the prospect’s specific needs. It is established when no doubts remain about purchasing the product.