When Equipment Is Purchased Entirely Through a Loan

question 115

Multiple Choice

When equipment is purchased entirely through a loan:

• A)The equipment is shown as an increase in the investing activities section.
• B)The equipment is shown as a decrease in the investing activities section.
• C)The loan is shown as an increase in the financing section.
• D)Neither the loan nor the purchase of equipment is shown in the investing or the financing sections.

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Definitions:

PCC

Pyridinium chlorochromate, a reagent used in organic chemistry for the oxidation of primary and secondary alcohols to aldehydes and ketones, respectively.

Magnesium Bromide

A chemical compound consisting of magnesium and bromine, often used in organic synthesis as a reagent or catalyst.

Organic Product

A substance containing carbon atoms, produced as the result of an organic chemical reaction.

Major Structure

The most stable or predominant structure among several possible structures of a molecule.