A Business Purchases Equipment for $8,000 Cash

question 37

Multiple Choice

A business purchases equipment for $8,000 cash.Which of the following accounts is credited?

• A)Cash
• B)Accounts Payable
• C)Owner,Capital
• D)Equipment

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Definitions:

Variances of Returns

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify risk.

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible return for a given level of risk, or equivalently, the lowest risk for a given level of expected return, according to Harry Markowitz's theory.

Firm-Specific Variances

Variability in a firm's stock price or returns that is attributable to factors unique to that firm, as opposed to general market factors.

Macroeconomic Factor

A wide-scale economic condition or variable that influences a broad economy and consequently affects individual businesses and financial markets.