Question

ABC Company purchased business property several years ago. This purchase would primarily be recorded in which financial statement?

a) Income Statement
b) Balance Sheet
c) Cash Flow Statement
d) Statement of Retained Earnings

Answer 1

The purchase of business property is recorded in the Balance Sheet.

Step-by-step explanation:

When a company purchases business property, it is primarily recorded in the Balance Sheet. The Balance Sheet provides a snapshot of a company's financial position at a specific point in time. It includes the company's assets, liabilities, and owner's equity, which would include the business property purchased by ABC Company.