The purchase of ten ceiling fans by Akpan Electronic Enterprises will be recorded as

A.

An acquisition of fixed asset

B.

An expense in its general office expense account

C.

Part of capital in the capital account

D.

An acquisition of stock

Correct answer is D

Since the shop is involved in the sales of electronics and fans are electronics, the purchase is therefore considered stock which has been purchased by Akpan electronic enterprise for resale.