Question

. Purchase of goods in cash affects only one element of accounting equation. Give reason for that

Answer 1

Only one side of the accounting equation will be affected when one asset is used to acquire another asset or to replace another asset, when one liability replaces another liability, when stock is issued to replace a liability, when a cash dividend or stock dividend is declared. 3) A company buys equipment for cash.

ʜᴏᴘᴇ ɪᴛ's ʜᴇʟᴘғᴜʟ ᴛᴏ ʏᴏᴜ

Answer 2

Only one side of the accounting equation will be affected when one asset is used to acquire another asset or to replace another asset, when one liability replaces another liability, when stock is issued to replace a liability, when a cash dividend or stock dividend is declared. 3) A company buys equipment for cash.

ʜᴏᴘᴇ ɪᴛ's ʜᴇʟᴘғᴜʟ ᴛᴏ ʏᴏᴜ