Greening Ltd is a newly established business selling computer hardware.Shown below are ledger accounts in T-account form,with entries made for the first month of operations.
- Which transaction represents the acquisition of a noncurrent asset?

Question

Greening Ltd is a newly established business selling computer hardware.Shown below are ledger accounts in T-account form,with entries made for the first month of operations. 
- Which transaction represents the acquisition of a noncurrent asset?

Quizplus · Accepted Answer

Transaction (4) represents the acquisition of a noncurrent asset as it involves the purchase of computer equipment for $7,000, which is a long-term asset that will be used in the business for more than one year. Transactions (2), (9), and (10) involve the purchase of inventory, payment of rent expense, and sales revenue, respectively, which are all current assets, expenses, or revenue that are consumed or earned within the current accounting period.

Greening Ltd Is a Newly Established Business Selling Computer Hardware