The Equipment Account Would Include All of the Following Costs

question 213

Multiple Choice

The Equipment account would include all of the following costs except

• A)installation costs.
• B)maintenance costs.
• C)equipment test runs.
• D)freight charges.

---

Definitions:

Credit Balances

The amount of money a company owes to its creditors, often shown as liabilities on the balance sheet.

Debit Balances

Refers to the amounts owed by a company or individual that are recorded on the left side of the balance sheet, indicating expenses or assets.

Recording Process

The systematic method of capturing and documenting financial transactions in the accounting records of an organization.

Journal

A detailed record where all financial transactions of a business are initially recorded, serving as the primary source of accounting data.