A Machine Purchased by a Business for Use in Generating

question 13

Multiple Choice

A machine purchased by a business for use in generating income can be recorded in an asset account called:

• A) prepayments.
• B) plant and equipment.
• C) debtors.
• D) production.

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Definitions:

Investing

The practice of assigning funds with the aim of producing income or profit.

Monthly

Occurring every month or once a month.

Compounded Quarterly

A process of calculating interest where the interest earned is added to the principal at the end of every three months, leading to an increase in the amount on which subsequent interest is calculated.

Semi-Annually

Occurring twice a year; typically refers to payments or adjustments made every six months.