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:

Craft Union

A labor organization representing workers who practice the same craft or trade, aiming to negotiate better wages, conditions, and rights for its members.

Arbitrator

A neutral third party who resolves disputes between two or more parties outside of the court system, usually in a binding decision.

Mediator

A neutral third party who assists in negotiating and reaching a settlement in a dispute or negotiation.

Collective Bargaining

A process of negotiations between employers and a group of employees aimed at reaching agreements to regulate working conditions.