Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 3 - The Accounting Information System - Self-Test Questions: 2

Answer

B : Balance Sheet only

Work Step by Step

Buying a machine on credit affects the equipment and accounts payable accounts. Both of them are the balance sheet items and therefore only The Balance Sheet will be affected by this transaction.
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