Bostel Wanted to Expand the Size of Its Warehouse in Order

question 35

Multiple Choice

Bostel wanted to expand the size of its warehouse in order to generate more profits. The company decided to purchase the building adjacent to its existing warehouse. The company pays for the building by borrowing from the bank. The purchase would be recorded as:

• A) Debit Cash; credit Notes Payable.
• B) Debit Buildings; credit Cash.
• C) Debit Buildings; Credit Notes Payable.
• D) Debit Cash and Buildings; Credit Notes Payable.

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Definitions:

Poverty Trap

A situation in which an individual or community remains in poverty because their low income prevents them from investing in opportunities that could increase their wealth.

Individual Capability

The skills, knowledge, and abilities possessed by an individual that enable them to perform tasks and achieve goals.

Susceptible

Likely to be influenced or harmed by a particular condition or phenomenon.

Operational Risk

The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events.