A Business Purchases Equipment by Paying Cash of $8,000 and Issuing

question 142

Multiple Choice

A business purchases equipment by paying cash of $8,000 and issuing a note payable of $12,000.Which of the following occurs?

• A) Cash is credited for $8,000; Equipment is credited for $20,000; and Notes payable is debited for $12,000.
• B) Cash is credited for $8,000; Equipment is debited for $20,000; and Notes payable is credited for $12,000.
• C) Cash is debited for $8,000; Equipment is debited for $12,000; and Notes payable is credited for $20,000.
• D) Cash is credited for $8,000; Equipment is credited for $12,000; and Notes payable is debited for $4,000.

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Definitions:

Cost-Cutting Strategies

Measures implemented by organizations to reduce expenses and improve financial efficiency without compromising on the quality of products or services.

Informal Element

Aspects of a culture or organization that are not officially codified but influence behavior and interactions.

Perceptions

The process of organizing and interpreting sensory information to make sense of the environment and experiences.

Organizational Behavior

A field of study that investigates the impact of individuals, groups, and structures on behavior within organizations, aiming to improve organizational effectiveness.