Which of the Following Entries Records the Acquisition of Office

question 183

Multiple Choice

Which of the following entries records the acquisition of office supplies on account?

• A) Office Supplies, debit; Cash, credit
• B) Cash, debit; Office Supplies, credit
• C) Office Supplies, debit; Accounts Payable, credit
• D) Accounts Receivable, debit; Office Supplies, credit

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Definitions:

Carrying On Business

The ongoing conduct of commercial activities with some degree of regularity or continuity for profit.

Unlimited Liability

A legal structure in which owners and partners are personally and fully responsible for all the debts and liabilities of the business.

General Partner

A type of partner in a partnership who is responsible for the day-to-day management of the partnership and is personally liable for the partnership's debts.

Misapplication Funds

Refers to the wrongful use or allocation of funds that were intended for a specific purpose.