Druganaut Company buys a $21,000 van on credit.The transaction will affect the

Name: Druganaut Company buys a $21,000 van on credit.The transaction will affect the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Purchasing a van on credit affects the balance sheet by increasing assets (the van) and increasing liabilities (the amount owed for the van). It does not immediately affect the income statement or retained earnings, as those are impacted by expenses and revenues over time, not by the acquisition of assets through credit.

Druganaut Company Buys a $21,000 Van on Credit