Which of the Following Is a True Statement About the Nature

question 8

Multiple Choice

Which of the following is a true statement about the nature of Equipment,account?

• A)While equipment is an asset,its use (depreciation)is an expense.
• B)While equipment is an asset,its use (depreciation)is a liability.
• C)While equipment is an asset,its use (depreciation)affects contributed capital.
• D)Equipment and its use (depreciation)are both liabilities.

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Definitions:

Bond

A financial device signifying a loan provided by an investor to a borrower, usually in the form of corporations or government entities.

Buyer Pays

A term indicating that the buyer is responsible for the costs of goods shipping, insurance, and any related expenses incurred until delivery is complete.

Accrued Interest

Interest that has accumulated over time but has not yet been paid or received.

Bond Indenture

A legal contract between a bond issuer and a bondholder that specifies the terms of the bond, such as its maturity date, face value, coupon rate, and any special features.