Question

Q15. State whether the statement is true or false: purchase of computer for office use will decrease the amount of capital.

Answer 1

Yes, the given statement is true.

Explanation:

• When big transactions are made by a company it can affect the financial statements of a company.
• If a company is undergoing financial implications then the large financial transactions can impact the financial status of the company.
• Therefore, in order to avoid such circumstances, the cash payment should be done in a meaningful way.