A Company Purchased a Truck for $800 on Credit

question 73

Multiple Choice

A company purchased a truck for $800 on credit.The journal entry to record this transaction,however,was a debit to 'Truck' for $500 and a credit to 'Account Payable' for $500.What will the effect be on the trial balance?

• A)Debits will be $300 less than credits.
• B)Debits will be $300 more than credits.
• C)The trial balance will still balance.
• D)None of the above

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Definitions:

Full-time Employees

Employees who work a standard work week, typically defined by the employer, and often receive benefits such as health insurance.

Over-time

Additional hours worked beyond the standard workweek, typically compensated at a higher pay rate.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Weaknesses

Attributes or areas that require improvement to reach desired goals or to maintain competitiveness.