Joe Purchased Office Equipment for $1,250 Cash

question 81

Multiple Choice

Joe purchased office equipment for $1,250 cash.What is the effect on accounts?

• A) One asset account increases; one liability account increases.
• B) Two asset accounts increase.
• C) One asset account increases; another asset account decreases.
• D) One asset account increases; one equity account increases.

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Definitions:

Cash Refunds

Monetary reimbursements given to customers for the return of products, often as a return policy of retail businesses.

Run-On Sentence

A sentence in which two or more independent clauses are improperly joined without an appropriate conjunction or punctuation.

Independent Clauses

Sentences or clauses that can stand alone as a complete thought or idea because they have both a subject and a predicate.

Simple Sentence

A sentence consisting of only one independent clause, with a subject and a predicate, conveying a complete thought.