Zebra Company purchased a van for $8,000 cash on January 1, Year 1. On the purchase date, how would Zebra's financial statements be affected?

Question

Quizplus · Accepted Answer

Option A is incorrect because it only affects the cash account, but not the van asset account.
Option C is incorrect because it incorrectly affects the income statement by recognizing an expense that has not occurred yet.
Option D is incorrect because it only affects the van asset account, but not the cash account. 
Option B is correct because it correctly affects both the cash account and the van asset account, reflecting the purchase transaction.

Zebra Company Purchased a Van for $8,000 Cash on January