The purchase of office computers for cash would include a debit to:
A)Cash and a credit to Office Equipment.
B)Office Equipment and a credit to Accounts Payable.
C)Accounts Receivable and credit to Office Equipment.
D)Office Equipment and a credit to Cash.

Question

Quizplus · Accepted Answer

When purchasing office computers for cash, there is a decrease in the Cash account because the company is paying cash. Therefore, we debit Cash. At the same time, there is an increase in the Office Equipment account, as the company is acquiring assets. Therefore, we credit Office Equipment. The correct choice is D, which shows the debit to Cash and credit to Office Equipment.

The Purchase of Office Computers for Cash Would Include a Debit