Ignoring GST, Which of the Following Entries Correctly Records the Purchase

question 21

Multiple Choice

Ignoring GST, which of the following entries correctly records the purchase of land for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20-year, 6% loan?

• A) DR Land $100 000; CR Bank $100 000
• B) DR Land $300 000; CR Bank $300 000
• C) DR Land $300 000; CR Bank $100 000; CR Loan $200 000
• D) DR Land $300 000; CR Loan $300 000

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Definitions:

Human Ingenuity

The capacity of humans to invent, create, and solve problems using creativity and intelligence.

Output Of Goods

The total quantity of products or services produced by a company, industry, or economy within a specific time period.

Economic Pie

A metaphorical representation of the total wealth or economic output available for distribution or sharing among a population or group.

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.