A business purchases equipment for $8,000 cash. Which of the following accounts will be debited?

Question

Quizplus · Accepted Answer

The account "Equipment" will be debited because the business is purchasing equipment, which is an asset. Assets are increased with debits, and the accounting principle of double-entry requires that every transaction has at least two entries, with one debit and one credit. Cash is also involved in the transaction, but it will be credited, not debited, since the business is paying cash for the equipment. Accounts Payable and Sandra, Capital are not relevant to this transaction.

A Business Purchases Equipment for $8,000 Cash