Cameron Diaz Corporation Purchased a Computer System for $20,000

question 94

Multiple Choice

Cameron Diaz Corporation purchased a computer system for $20,000.The company paid $5,000 cash and issued a $15,000 note payable for the entire balance.The journal entry to record this transaction includes a(n) ________.

• A)debit to Equipment for $20,000
• B)credit to Accounts Payable for $15,000
• C)debit to Expense for $20,000
• D)credit to Cash for $20,000

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Definitions:

Explicit Costs

Direct financial payments made to acquire resources or services for business operations.

Total Economic Costs

The sum of explicit and implicit costs representing the total resources expended in the production of goods or services.

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