00:01
Imagine you're the accounting manager and the cfo is assessing the benefits of acquiring a new digital press that costs $75 ,000 and disposal of a similar used press.
00:33
And they ask you to do the following.
00:37
Explain the effects of the transactions.
00:39
So first of all, when you acquire this new on the balance sheet, on the balance sheet, you'll have a new asset.
01:06
You'll have a new asset that will be added to that section that will be increased your assets, so that will increase the assets by $75 ,000.
01:17
And then this also, we're going to have the liabilities and the equity would also increase.
01:29
If you paid cash, then your cash would go down.
01:35
And if you paid cash, it would go down...