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:

Percent Volume

A measure representing the concentration of a component in a mixture or solution as a percentage of the total volume.

Plasma

The liquid component of blood in which the blood cells are suspended, consisting mainly of water, proteins, electrolytes, and nutrients.

RBCs

Red blood cells, responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide back to the lungs.

WBCs

White Blood Cells, components of the blood involved in protecting the body against both infectious disease and foreign invaders.