A Business Purchased a Building by Paying Part of the Purchase

question 82

Multiple Choice

A business purchased a building by paying part of the purchase price in cash as a down payment and signing a mortgage note for the remainder.The business should:

• A) debit the mortgage note payable for the amount of the mortgage.
• B) debit the building account for the amount of the mortgage.
• C) debit cash for the amount paid on the down payment.
• D) credit the mortgage note payable for the amount of the mortgage.

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Definitions:

Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology concerning human motivation.

Goal Orientation Theory

The view that achievement motivation depends on which of four goal orientations (mastery/approach, mastery/avoidance, performance/avoidance, performance/approach) an individual adopts.

Mastery/Avoidance

Goals oriented towards gaining proficiency in a task versus goals aimed at avoiding incompetence or failure.

Physiological Need

A basic biological requirement for human survival, such as food, water, and sleep, which must be satisfied to maintain health.