Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | l | r | r | } \hline \text { Cash } & 3000 & \\\hline \text { Accounts payable } & & 3000 \\\hline\end{array}$$

question 7

Multiple Choice

Which of the following journal entries would be recorded if a business purchased equipment for $3 000 cash?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 3000 & \\
• \hline \text { Accounts payable } & & 3000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 3000 & \\
• \hline \text { Equipment } & & 3000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Equipment } & 3000 & \\
• \hline \text { Accounts payable } & & 3000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Equipment } & 3000 & \\
• \hline \text { Cash } & & 3000 \\
• \hline
• \end{array}\]

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Definitions:

Functional Currency

The primary currency of the primary economic environment in which an entity operates, used in preparing its financial statements.

Dividends

Distributions by a company to its shareholders, consisting of a share of the company's profits.

Historical Rates

The exchange rates from past periods used for translating transactions in foreign currencies or financial statements of foreign operations.

Transaction Exposure

The potential risk of exchange rate movements affecting the value of a company's financial transactions denominated in foreign currencies.