When a company acquires a building by paying cash, which account is credited in the transaction?

Choose the correct answer

Explanation

In a purchase of a building paid in cash, the building account (an asset) is debited to reflect the acquisition, while the cash account is credited to show the outflow of cash. Therefore, the cash account is credited in this transaction.

When a company acquires a building by paying cash, w… — Accounting Mcqs | PakQuizHub