Asked by Emily_ nicole on Apr 25, 2024
Verified
Bob purchased a new computer for the company for cash. The transaction will:
A) increase Computer; increase Capital.
B) decrease Cash; increase Accounts Payable.
C) decrease Cash; increase Computer.
D) increase Supplies; increase Accounts Payable.
Accounts Payable
Short-term liabilities of a company, representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.
Computer
An electronic device capable of manipulating data or information, allowing for storage, retrieval, and processing to perform various tasks.
Capital
The financial resources available for use, such as cash, goods, or property, invested to create profit.
- Investigate transactions to establish their effect on the accounting equation.
- Gain insight into the process of asset procurement and its influence on the balance of accounting equations.
Verified Answer
AK
Ayden Klaire7 days ago
Final Answer :
C
Explanation :
The transaction involves buying a computer with cash, which means the company's cash decreases while its computer (an asset) increases.
Learning Objectives
- Investigate transactions to establish their effect on the accounting equation.
- Gain insight into the process of asset procurement and its influence on the balance of accounting equations.