Answer:
Debiting the buyer and crediting the seller by $94,000
Explanation:
Since the seller listed a property for $96,000 and it sold for $94,000, so the purchase price would be selling price of the property as the property would be sold and the other person pays the money to buy the property.
So, the purchase price would appear through
Debiting the buyer and crediting the seller by $94,000
or
Buyer A/c Dr $94,000
To Seller A/c $94,000
(Being purchase of property is recorded)
Answer:
Equipment account increases , and cash decreases with same amount
Explanation:
In the case of acquisition of a new equipment , the equipment account is debited (increase) while the cash account is credit with the same amount of money used for the purchase .
Purchase of an equipment is a balance sheet item , which means it is recorded in the balance sheet and not the income statement as it is not an expense.
The asset register must also be updated with the value of the newly acquired item
Answer:
D. liabilities.
Explanation:
Payables are payments the business is expecting to make to its suppliers. They represent the goods and services that the company has received but has not paid. Payables are there amounts a business owes to other parties. They are debts are hence should be recorded as liabilities.
Liabilities are the financial obligations a business owe to third parties. They are debts incurred in the normal course of business operations. Liabilities are grouped as either current or long-term. Current liabilities are due within the current financial year, while long-term are payable in future financial periods.
Answer: True.
Explanation:
Here, the statement is related to the economic theory of demand, not with economic theory of supply. So, we are considering only law of demand.
The statement is true according to the economic theory of demand.
Economic theory of demand states that other things remains constant, increase in the price of a commodity results in lower demand for that commodity and vice versa. There is an inverse relationship between the price and demand of a commodity.
Economic theory of supply states that other things remains constant, increase in the price of a commodity results in higher supply for that commodity and vice versa. There is a direct relationship between the price and supply for a commodity.
