Asked by Divya Patel on May 11, 2024
Verified
Harvest Moon Company has total Assets of $37,000. If $2,000 cash is used to purchase a new computer, the total Assets would be:
A) $37,000.
B) $35,000.
C) $39,000.
D) $2,000.
New Computer
A recent purchase or acquisition of a computing device for personal or business use.
Total Assets
The cumulative value of all resources owned by a company, including cash, inventory, property, and equipment.
Cash
Physical form of currency such as coins and banknotes; in accounting, cash also includes balances in bank accounts.
- Review transactions to find out their influence on the accounting equation.
- Acquire knowledge about the acquisition of assets and its repercussions on the accounting equation.
Verified Answer
HD
Hajar DarwishMay 17, 2024
Final Answer :
A
Explanation :
When $2,000 cash is used to purchase a new computer, the cash asset decreases by $2,000, but the value of assets increases by a computer worth $2,000, leaving total assets unchanged at $37,000.
Learning Objectives
- Review transactions to find out their influence on the accounting equation.
- Acquire knowledge about the acquisition of assets and its repercussions on the accounting equation.