The Business Completes a Purchase Order for the Purchase of More

question 23

Multiple Choice

The business completes a purchase order for the purchase of more inventory at a cost of $1500.The immediate effect on the accounting equation is to:

• A) increase asset inventory by $1500 and decrease the asset cash by $1500.
• B) decrease the asset cash by $1500 and increase expenses by $1500.
• C) increase liabilities by $1500 and increase asset inventory by $1500.
• D) no effect as this is not recognised as a business transaction until the inventory is received.

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Definitions:

Statutory Right

A legal right granted by a specific statute or legislation enacted by a governmental body.

Moral Right

A claim or entitlement to something based on ethical or moral grounds, often concerning fair treatment or respect.

Healthcare Right

The principle that every individual has the right to access and receive healthcare services.

Single-payer Government

A healthcare system in which a single public or quasi-public agency organizes healthcare financing, but delivery may be through private providers.