A Business Purchases Equipment for $8,000 Cash

question 142

Multiple Choice

A business purchases equipment for $8,000 cash. Which of the following accounts will be credited?

• A)Cash
• B)Accounts Payable
• C)Sandra, Capital
• D)Equipment

---

Definitions:

Interest Rate

The cost of borrowing money or the payment received for deposit funds, usually expressed as an annual percentage of the principal.

Wine Barrels

Standardized wooden or metal barrels used for aging, storing, and transporting wine.

Statute Of Limitations

A statute setting the maximum time period within which certain actions can be brought to court or rights enforced. After the period of time has run, no legal action can be brought.

First-degree Murder

A crime involving premeditation or planning before killing another person, considered one of the most serious forms of homicide.