A Business Purchases Equipment for Cash in the Amount of $8,000.Which

question 115

Multiple Choice

A business purchases equipment for cash in the amount of $8,000.Which account is debited?

• A) Cash
• B) Accounts payable
• C) Utilities expense
• D) Equipment

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Definitions:

Public Good

A type of good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use, and where use by one individual does not reduce availability to others.

Private Good

A type of good that is both excludable and rivalrous, meaning that non-paying consumers can be prevented from accessing it and its consumption by one individual prevents others from using it.

Utility Function

A mathematical representation in economics that captures the preference orderings of various bundles of goods for an individual or entity.

Private Consumptions

refers to the total amount of goods and services consumed by private households.