Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | l | r | r | } \hline \text { Tane Brown, capital } & 6000 & \\\hline \text { Cash } & & 6000 \\\hline\end{array}$$

question 25

Multiple Choice

Which of the following journal entries would be recorded if Jane Brown started a business and then deposited cash of $6 000 into the business bank account?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Tane Brown, capital } & 6000 & \\
• \hline \text { Cash } & & 6000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Tane Brown, capital } & 6000 & \\
• \hline \text { Accounts payable } & & 6000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts payable } & 6000 & \\
• \hline \text { Cash } & & 6000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 6000 & \\
• \hline \text { Jane Brown, capital } & & 6000 \\
• \hline
• \end{array}\]

---

Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Unequal Lives

A term used in capital budgeting to describe projects or investments with different durations.

Replacement Chain Method

A capital budgeting technique that compares different investment projects with unequal lifespans by calculating their equivalent annual cost.

Equivalent Annual Annuity

Equivalent Annual Annuity is a calculation used to compare the annualized cash flows of projects or investments with different durations.