What Would Be the Effect on Accounts If the Business

question 51

Multiple Choice

What would be the effect on accounts if the business purchased office supplies for cash?

• A) An asset would be debited and an expense credited.
• B) Capital would be debited and revenue credited.
• C) An asset would be debited and revenue credited.
• D) An asset would be debited and an asset credited.

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Definitions:

Art Collection

An accumulation of artworks curated by individuals, institutions, or organizations, typically for cultural, aesthetic, or investment purposes.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Loanable Funds

The money available for lending and borrowing in the financial markets, influenced by interest rates.

Asset Beta

A measure used in finance to determine the risk of an asset in relation to the market, isolated from its financial leverage.