Your new firm just purchased a storage building and property for $40,000 that was paid for with a $20,000 long-term loan and a new infusion of $20,000 from the owners. Which of the following accounting entries is most appropriate?
A) $40,000 increase in plant, property and equipment, a $20,000 decrease in long-term debt, and a $20,000 decrease in owners equity.
B) $40,000 increase in plant, property and equipment, a $20,000 increase in long-term debt, and a $20,000 increase in owners equity.
C) $40,000 increase in cash and a $40,000 increase in plant, property, and equipment.
D) $40,000 increase in plant, property and equipment and a $40,000 increase in cash.
B
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Which of the following is a distinct characteristic of distributed systems?
A) less required coordination across sites B) decreased security risks C) dependence on high-quality telecommunications lines D) communication and support costs are lower
The convention of full disclosure requires that financial statements present all the information relevant to users' understanding of the statements
Indicate whether the statement is true or false