a. An owner contributes cash to the business. b. An organization borrows money from a bank. c. An organization advertises a new product. d. An organization sells some of its land. e. An organization purchases equipment.

a. An owner contributes cash to the business. b. An organization borrows money from a bank. c. An organization advertises a new product. d. An organization sells some of its land. e. An organization purchases equipment.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 7Q: What specific accounts are recognized when a business purchases equipment on credit?

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Question

Match each transaction a through e to one of the following activities of an organization: financing activity (F), investing activity (I), or operating activity (O).

a. An owner contributes cash to the business.
b. An organization borrows money from a bank.
c. An organization advertises a new product.
d. An organization sells some of its land.
e. An organization purchases equipment.

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