Which of the following transactions has an impact on the bank's cash balance but not on retained earnings?
A) Purchase of equipment
B) Sales of goods
C) Payment of wages
D) Payment of financial interest

Question

Quizplus · Accepted Answer

The purchase of equipment impacts the bank's cash balance because cash is used to pay for the equipment, but it does not affect retained earnings directly since it is recorded as a capital expenditure on the balance sheet, not an expense on the income statement.

Which of the Following Transactions Has an Impact on the Bank's