Accrual Accounting vs. Cash Basis Accounting Video Lessons

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Problem: Pacman Company buys a $12,000 van on credit. The transaction will affect the a. income statement only. b. balance sheet only. c. income statement and owner's equity statement only. d. income statement, owner's equity statement, and balance sheet.

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Problem Details

Pacman Company buys a $12,000 van on credit. The transaction will affect the

a. income statement only.

b. balance sheet only.

c. income statement and owner's equity statement only.

d. income statement, owner's equity statement, and balance sheet.

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What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Accrual Accounting vs. Cash Basis Accounting concept. You can view video lessons to learn Accrual Accounting vs. Cash Basis Accounting. Or if you need more Accrual Accounting vs. Cash Basis Accounting practice, you can also practice Accrual Accounting vs. Cash Basis Accounting practice problems.

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