A Business Purchased a Building by Paying Part of the Purchase

question 82

Multiple Choice

A business purchased a building by paying part of the purchase price in cash as a down payment and signing a mortgage note for the remainder.The business should:

• A) debit the mortgage note payable for the amount of the mortgage.
• B) debit the building account for the amount of the mortgage.
• C) debit cash for the amount paid on the down payment.
• D) credit the mortgage note payable for the amount of the mortgage.

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Definitions:

Practice

A repeated exercise or activity to increase proficiency in a skill or area.

Funding

The financial resources provided for a project, business, or organization, typically in the form of investments, loans, or grants.

Insight

Deep understanding or realization that comes from a detailed analysis of data, information, or circumstances, often leading to new perspectives or solutions.

Obvious Observation

A statement or fact that is clear, self-evident, or easily understood without the need for detailed explanation.