The purchase of office computers for cash includes 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, the cash account would be decreased (credited) and the office equipment account would be increased (debited) to reflect the acquisition of the new assets. Therefore, the correct answer is D, Office Equipment and a credit to Cash.

The Purchase of Office Computers for Cash Includes a Debit