Christopher Company Purchased $20,000 of Equipment for Cash $\begin{array} { l r l } \text { Cash } & 20,000 \\\text { Equipment } & 20,000\end{array}$

question 95

Multiple Choice

Christopher Company purchased $20,000 of equipment for cash. The correct entry to record the purchase of equipment is

• A)
• \(\begin{array} { l r l }
• \text { Cash } & 20,000 \\
• \text { Equipment } & 20,000
• \end{array}\)
• B)
• Equipment \(\quad 20,000\)
• Accounts Payable \(\quad 20,000\)
• C)
• \(\begin{array} { c r }
• \text { Equipment } & 20,000 \\
• \text { Cash } & 20,000
• \end{array}\)
• D)
• \(\begin{array}{cc}
• \text { Accounts Payable } & 20,000 \\
• \text { Equipment } & 20,000
• \end{array}\)

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Definitions:

Cash Proceeds

The amount of money received from transactions such as sales, financing, or the sale of assets.

Amortization

Amortization is the process of spreading the cost of an intangible asset over its useful life, similar to depreciation but for non-physical assets.

Gain

The financial benefit that occurs when the selling price of an asset exceeds its purchase price or carrying value.