Double-entry account records what is exchanged in a transaction (debits and credits).Which of the following is recorded when a company purchases (receives)a computer and pays (gives)cash?
A)The computer is recorded as a credit and the cash is recorded as a credit
B)The computer is recorded as a debit and the cash is recorded as a debit
C)The computer is recorded as a credit and the cash is recorded as a debit
D)The computer is recorded as a debit and the cash is recorded as a credit

Question

Quizplus · Accepted Answer

According to the double-entry accounting system, every transaction affects at least two accounts. In this transaction, the company is receiving a computer, which is an asset, and paying cash, which is a decrease in assets. The asset account, computer, is debited, and the cash account is credited. Therefore, the computer is recorded as a debit, and the cash is recorded as a credit. The correct answer is D.

Double-Entry Account Records What Is Exchanged in a Transaction (Debits