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

---

Definitions:

Neurodegenerative Disease

A disorder characterized by the progressive loss of nerve cells and function, leading to degeneration in mental and physical abilities.

Motor Skills

Abilities required to perform movements and tasks using various muscles and parts of the body, such as walking, writing, or tying shoelaces.

Corpus Callosum

A wide, flat bundle of neural fibers beneath the cortex in the brain, connecting the left and right cerebral hemispheres and facilitating interhemispheric communication.

Visual Fields

The total area in which objects can be seen in the peripheral vision while the eye is focused on a central point.