To Record the Purchase of Assets on Account Under the Modified

question 37

Multiple Choice

To record the purchase of assets on account under the modified cash basis of accounting method,

• A) debit the asset and credit Accounts Payable.
• B) debit the asset and credit Cash.
• C) debit Accounts Receivable and credit Accounts Payable.
• D) debit Accounts Payable and credit the asset.

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Definitions:

Tectonic Plates

Large pieces of the Earth's crust that move, float, and sometimes fracture and whose interaction causes continental drift, earthquakes, volcanoes, mountains, and oceanic trenches.

Ejecta

Material that is expelled or thrown out, especially as a result of volcanic eruption, meteorite impact, or other explosive events.

Sedimentary

Pertaining to rocks formed by the accumulation or deposition of mineral or organic particles at the Earth's surface, followed by compaction.

Sandstone

A sedimentary rock composed mainly of sand-sized minerals or rock grains.