The Correct Entry to Record the Purchase of a Motor

question 42

Multiple Choice

The correct entry to record the purchase of a motor vehicle for $40 000 cash, plus 10% GST is which of the following?

• A) DR Motor vehicles $44 000; CR Bank $44 000
• B) DR Motor vehicles $40 000; DR GST receivable $4000; CR Bank $44 000
• C) DR Motor vehicles $44 000; CR Bank $40 000; CR GST collected $4000
• D) DR Motor vehicles $36 000; DR GST receivable $4000; CR Bank $40 000

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Definitions:

Sociological Perspective

A view of society based on the dynamic relationships between individuals and the larger social network in which we all live.

Social Inequality

Disparities in opportunities and rewards are present across different social standings or roles within a society or group.

Social Stratification

The arrangement of individuals and groups in a hierarchical system within society, often based on factors like wealth, power, and social status.

Hierarchical Social Classes

A system of social stratification where individuals are grouped in a ranked order from the highest to the lowest in terms of factors like wealth, status, and power.