Question

On December 31, the company purchases equipment for $10,000 and pays for the purchase in cash. What is the total amount spent on the equipment?

1) $10,000
2) $5,000
3) $15,000
4) $20,000

Answer 1

The total amount spent on the equipment by the company was $10,000, which was paid in cash.

Step-by-step explanation:

The question asks about the total amount spent on the purchase of equipment for a company. Since the equipment was purchased for $10,000 and payment was made in cash, the total amount spent is $10,000. This question is related to recording business transactions, which falls under the subject of Business or Accounting.