The Purchase of New Equipment Is a Use of Cash,and

question 76

True/False

The purchase of new equipment is a use of cash,and it reduces the firm's net cash balance.

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Definitions:

Accounting Records

Documents and ledgers that record financial transactions and the financial position of an organization, used for analysis and compliance purposes.

Voucher System

An accounting system that involves preparing and using vouchers, which are documents that authorize and record the payment of a company expense.

Cash Payments

Transactions involving the immediate transfer of cash to settle the purchase of goods, services, or a debt.

Liabilities

Financial obligations of a business, such as loans, accounts payable, and mortgages, that it is required to pay to others.