Barbara buys a fixed asset for £7000 for use in her business. She pays for it out of the business bank account. Which one of the following statements is correct?

Question

Quizplus · Accepted Answer

Purchasing a fixed asset for £7000 from the business bank account decreases the net current assets by £7000, as cash (a current asset) is reduced without an immediate increase in current assets.

Barbara Buys a Fixed Asset for £7000 for Use in Her