A Capital Expenditure Results in a Debit to

question 59

Multiple Choice

A capital expenditure results in a debit to

• A) an expense account
• B) a capital account
• C) a liability account
• D) an asset account

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Definitions:

Debit Balance

A condition where the sum of debits in an account exceeds the sum of credits.

Voucher System

An accounting system that involves a written authorization or record for any transaction that will result in a cash payment.

Cash Payments

Transactions that involve the immediate transfer of cash to settle a debt or purchase goods or services.

Acceptance

Acceptance in business refers to the agreement to the terms of a contract or an acknowledgment that a product or service meets the required standards.