Six months ago, Madison purchased new dining room and living room furniture for $8,000. For purposes of preparing an accurate financial statement, how would this purchase appear?

1. Use asset on the balance sheet
2. Investment asset on the balance sheet
3. Variable outflow on the cash flow statement
4. Fixed outflow on the cash flow statement
5. I, II and III only
6. I and III only
7. II and IV only
8. IV only

Group of answer choices

I and III only

I, II and III only

IV only

II and IV only