A machine purchased by a business for use in generating income can be recorded in an asset account called:

Question

Quizplus · Accepted Answer

Plant and equipment is the appropriate asset account for recording the purchase of machinery used to generate income. Prepayments are payments made in advance for goods or services and debtors are amounts owed to the business by customers. Production is a cost account used to track costs incurred in the production of goods or services.

A Machine Purchased by a Business for Use in Generating