Question

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vaughn company buys a $22300 van on credit. the transaction will affect the

income statement only.
income statement, owners equity statement, and balance sheet.
income statement and owners equity statement only.
balance sheet only.

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Explanation:

When a company buys an asset (van) on credit, it increases assets (van) and increases liabilities (accounts payable). The balance sheet shows assets, liabilities, and equity. This transaction doesn't involve revenue, expense, or equity changes (like drawings, investments, or net income), so it doesn't affect the income statement or owner’s equity statement. Only the balance sheet is affected as it records assets and liabilities.

Answer:

D. balance sheet only.