When a company uses cash to purchase a machine,recording the purchase will ________.

Name: When a company uses cash to purchase a machine,recording the purchase will ________.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The purchase of the machine involves exchanging cash (asset) for a machine (also an asset). There is no impact on shareholders' equity or expenses. Depreciation expense and liabilities may be affected in the future as the machine is used and needs to be depreciated, but this is not part of the initial purchase transaction.

When a Company Uses Cash to Purchase a Machine,recording the Purchase