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C_TS410_2504 · Question #75

You post an invoice to purchase a company car. What accounts are posted in the journal entry? Note. There are 3 correct answers to this question.

The correct answer is A. Supplier account B. Asset account D. Tax account. When posting an invoice for the purchase of a company car, the journal entry typically involves the following accounts: Supplier account (A): This account is credited to record the liability to the supplier for the purchase of the car. Asset account (B): This account is debited…

Financial Accounting

Question

You post an invoice to purchase a company car. What accounts are posted in the journal entry? Note. There are 3 correct answers to this question.

Options

  • ASupplier account
  • BAsset account
  • CMaterial account
  • DTax account
  • ECustomer account

How the community answered

(43 responses)
  • A
    70% (30)
  • C
    12% (5)
  • E
    19% (8)

Explanation

When posting an invoice for the purchase of a company car, the journal entry typically involves the following accounts: Supplier account (A): This account is credited to record the liability to the supplier for the purchase of the car. Asset account (B): This account is debited to reflect the addition of the company car as a fixed asset in the company's balance sheet. Tax account (D): If the purchase involves sales tax or VAT, this account is also debited to record the tax component of the car's purchase.

Topics

#asset acquisition#journal entry#tax account#supplier account

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