True or False? When an organization purchases equipment, the asset representing the equipment purchase is recorded on the organization’s statement of income.
True
False
| A statement of income or income statement is one of the three financial | |||||||||
| statements of an organization. The other two are the balance sheet and the cash flow statement. | |||||||||
| When an organization purchases equipment it will be recorded as follows on the three statements: | |||||||||
| Income statement - cost of goods sold (credit), | |||||||||
| balance sheet - assets (credit), | |||||||||
| cash flow statement - cash flow from operating activities (debit). | |||||||||
| TRUE. | |||||||||
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