Carson City Saloon purchased a $25,000 truck for catering from its restaurant.It made a down payment of one-fourth of the price.What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck?
$\begin{array}{ll}\text { Income Statement }&\text { Cash Flow Statement }\
a.\$ 25,000 & \$ 0 \
b.\$ 0 & \$(25,000) \
c.\$ 25,000 & \$(6,250) \
d.\$ 0 & \$(6,250)
\end{array}$

Question

Carson City Saloon purchased a $25,000 truck for catering from its restaurant.It made a down payment of one-fourth of the price.What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck?  
$\begin{array}{ll}\text { Income Statement }&\text { Cash Flow Statement }\
a.\$ 25,000 & \$ 0 \
b.\$ 0 & \$(25,000) \
c.\$ 25,000 & \$(6,250) \
d.\$ 0 & \$(6,250)
\end{array}$

Quizplus · Accepted Answer

The Answer of Carson City Saloon purchased a $25,000 truck for catering from its restaurant.It made a down payment of one-fourth of the price.What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck?  
$\begin{array}{ll}\text { Income Statement }&\text { Cash Flow Statement }\
a.\$ 25,000 & \$ 0 \
b.\$ 0 & \$(25,000) \
c.\$ 25,000 & \$(6,250) \
d.\$ 0 & \$(6,250)
\end{array}$

Carson City Saloon Purchased a $25,000 Truck for Catering from Its