ASSETS ACQUIRED IS RECORDED BY DEBITING

• A. Asset Account, Crediting Cash Account ✓
• B. Cash Account, Crediting Asset Account
• C. Purchase of Business Account, Crediting Sale of Business Account
• D. Asset Account, Crediting Purchase of Business Account

When assets are acquired, they are recorded by debiting an Asset Account and crediting the Cash Account. This process reflects the increase in assets on one side and the decrease in cash on the other side of the accounting equation.

Assets acquired represent resources controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity. When an asset is acquired, it is recognized and recorded in the financial statements through double-entry bookkeeping. The debit entry increases the asset account, reflecting ownership or control over that resource, while the credit entry decreases the cash account, representing the outflow of cash to acquire the asset.