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What would the impact be in cash or accrual accounting

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Reference no: EM132980436

Question - Think about the need for a business to buy a capital good (building, vehicle, equipment). What would the impact be in cash or accrual accounting to buy a $30,000 vehicle that you plan on using for 5 years and expect to have zero residual value at that point? What's the impact on profitability in the month of purchase - and the following month - in each system?

Reference no: EM132980436

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