A Business Purchases Equipment in Exchange for a Note Payable

question 157

Multiple Choice

A business purchases equipment in exchange for a note payable.This transaction results in ________.

• A) no journal entry because no cash has been paid
• B) a debit to Notes Payable and a credit to Equipment
• C) an increase in liabilities
• D) a debit to Equipment and a credit to Accounts Payable

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Definitions:

Personal Troubles

Personal challenges that require individual solutions.

Mills

Refers to C. Wright Mills, an American sociologist known for his theories on power and social structure, and for coining the term "sociological imagination."

Social Issues

Challenges caused by larger social factors that require collective solutions.

Canadian Sociology

A field of study focusing on the social structure, culture, and issues within Canada, incorporating perspectives unique to Canadian society.