The Casan Company purchased a delivery van for $100,000 in cash.What is the effect on current assets?
A)Increase in current assets
B)Decrease in current assets
C)No effect on current assets
D)Unable to determine

Question

Quizplus · Accepted Answer

Purchasing a delivery van for cash decreases current assets because cash, a current asset, is used for the purchase, reducing the total amount of current assets.

The Casan Company Purchased a Delivery Van for $100,000 in Cash.What