The Purchase of a Machine on Credit Was Recorded as a Debit

question 55

Multiple Choice

The purchase of a machine on credit was recorded as a debit to Machinery, a debit to Discount on note payable, and a credit to Notes payable. Under IFRS, at the end of the accounting period, any unamortized debit balance in the discount account should be reported as a(n) :

• A) asset.
• B) a direct reduction to the liability - without using a contra account.
• C) expense.
• D) liability.

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Definitions:

Secondary Labor Market

Refers to segment of the labor market characterized by low pay, poor job security, and limited career prospects, often involving part-time or temporary work.

Primary Labor Market

Refers to sectors that offer high wages, good benefits, and stable employment, contrasting with the secondary labor market.

Semiskilled Labor

Workforce individuals possessing some training and skills but less than that required for skilled labor, often involving manual or repetitive tasks.

Backward-Bending

Refers to the portion of a labor supply curve that bends backward at higher wage levels, indicating a decrease in labor supply as wages increase beyond a certain point.