Ignoring GST, the Correct Entry to Record the Purchase of a Motor

question 34

Multiple Choice

Ignoring GST, the correct entry to record the purchase of a motor vehicle for $45 000 cash is:

• A) DR Bank $45 000; CR Motor vehicles $45 000
• B) DR Motor vehicles $45 000; CR Bank $45 000
• C) DR Motor vehicles $45 000; CR Equity $45 000
• D) DR Motor vehicles $45 000; CR Accounts receivable $45 000

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Definitions:

Unfairly Restricting

refers to practices or policies that unduly limit the freedoms or opportunities of individuals or entities, often in a manner that is deemed unjust or biased.

Anticompetitive Behavior

practices by businesses that reduce competition in the market, often scrutinized under antitrust laws.

Federal Law

Federal law refers to the body of law created by the federal government of a country, in the United States it is the law enacted by Congress.

Sherman Act

U.S. antitrust law aimed at promoting competition by prohibiting monopolies, cartels, and other practices that restrict free competition.