The Purchase of an Automobile with a Cash Down Payment

question 107

Multiple Choice

The purchase of an automobile with a cash down payment and a written promise to pay the balance in the future would include a:

• A) credit to Cash and a credit to Note Payable
• B) debit to Cash and a credit to Automobile
• C) debit to Note Payable and a credit to Cash
• D) debit to Cash and a debit to Note Payable

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Definitions:

Ex-Dividend Date

The date after which a stock is traded without its previously declared dividend, meaning purchasers no longer have the right to receive the declared payment.

Date Of Record

A specific date set by a company on which the shareholders must be registered to be entitled to dividend payments.

Cum Dividend

A term used to describe a stock that is trading with the right to receive a dividend that has been declared but not yet paid.

Ex-Dividend Date

The specific date on which shares traded no longer come with the right to receive the most recently declared dividend.