Purchase of machinery for cash:Question 3Answera.Increases total assetsb.Increases assets and liabilitiesc.Keeps total assets unchangedd.Decreases total assets

Question

Purchase of machinery for cash:Question 3Answera.Increases total assetsb.Increases assets and liabilitiesc.Keeps total assets unchangedd.Decreases total assets
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

The correct answer is c. Keeps total assets unchanged.

Here's why:

When a company purchases machinery for cash, it is essentially converting one type of asset (cash) into another type (machinery). The cash account decreases while the machinery (or equipment) account increases.

The total amount o Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

This problem has been solved

Similar Questions

Purchase of machinery for cash:Question 3Answera.Increases total assetsb.Increases assets and liabilitiesc.Keeps total assets unchangedd.Decreases total assets

Purchase of machinery for cash:Question 3Answera.Decreases total assetsb.Increases assets and liabilitiesc.Increases total assetsd.Keeps total assets unchanged

.While calculating purchase consideration ............... values of assets is to be considered.

Which of the following is a financial asset?Answer : Machinery  Intangible assets   Loan receivable  Prepayments

What represents the international sale and purchase of financial assets in BoP?Visible tradeInvisible tradeFinancial accountCurrent account

1/3