Question

Sandhill Co. purchased new equipment for $90,000. Which financial statement will reflect this transaction?

a) Income Statement
b) Balance Sheet
c) Cash Flow Statement
d) Statement of Owner's Equity

Answer 1

The purchase of new equipment by Sandhill Co. for $90,000 will be reflected in the Balance Sheet.

Step-by-step explanation:

The financial statement that will reflect the purchase of new equipment by Sandhill Co. for $90,000 is the Balance Sheet. The Balance Sheet provides a snapshot of a company's financial position at a specific point in time and includes information about its assets, liabilities, and owner's equity. The purchase of new equipment would be recorded as an increase in the company's assets.