Ignoring GST, What Is the Correct Entry to Record the Purchase

question 29

Multiple Choice

Ignoring GST, what is the correct entry to record the purchase of a motor vehicle for $25 000 cash?

• A) Debit bank $25 000; credit motor vehicles $25 000
• B) Debit motor vehicles $25 000; credit bank $25 000
• C) Debit motor vehicles $25 000; credit capital $25 000
• D) Debit motor vehicles $25 000; credit accounts receivable $25 000

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Definitions:

Visual Support

Use of images, videos, charts, or any visual aids to enhance the understanding or appeal of a message.

Handling Audience

Strategies and techniques used by a speaker or writer to engage and maintain the interest of their audience, ensuring message efficacy.

Hostile Objection

Strong resistance or opposition encountered, typically in the context of sales, negotiations, or legal proceedings.

Anticipate

To expect or predict something to occur in the future, based on current knowledge or trends.