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.

---

Definitions:

Statistical Significance

A measure of how likely it is that obtained results are not due to chance, often determined by a p-value.

Systematic Variance

The portion of total variance in a set of data that is attributable to identifiable factors or variables, as opposed to random variance.

Group Means

The average values obtained from different samples or sets of data, representing the central tendency of each group.

Grand Mean

The mean of means, calculated by taking the average of several group means, used in statistical analysis to summarize overall data.