When equipment is purchased entirely through a loan:
A)The equipment is shown as an increase in the investing activities section.
B)The equipment is shown as a decrease in the investing activities section.
C)The loan is shown as an increase in the financing section.
D)Neither the loan nor the purchase of equipment is shown in the investing or the financing sections.

Question

Quizplus · Accepted Answer

The Answer of When equipment is purchased entirely through a loan:
A)The equipment is shown as an increase in the investing activities section.
B)The equipment is shown as a decrease in the investing activities section.
C)The loan is shown as an increase in the financing section.
D)Neither the loan nor the purchase of equipment is shown in the investing or the financing sections.

When Equipment Is Purchased Entirely Through a Loan