A business purchased supplies on credit. What is the effect of thistransaction on the accounting equation?a. Increase one asset and decrease another assetb. Increase an asset and increase a liabilityc. Decrease an asset and decrease a liabilityd. Increase an asset and increase owner's equity

Effect of Purchasing Supplies on Credit on the Accounting EquationThe accounting equation is the…

Answered: A business purchased supplies on…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 4E: Describe a business transaction that will do the following: a. Increase an asset and increase a...

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Consider the following accounts and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Receivable B. Sales Revenue C. Land D. Unearned Revenue
What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
What are the effects of the following transactions on the accounting equation? Indicate an increase (+) or decrease () under the affected asset, liability, and owners equity headings.
What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.
What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changes
To purchase an asset such as office equipment on account, you would credit which account? (a) Cash (c) Accounts Payable (b) Accounts Receivable (d) Capital
The effect of payment made to creditors of the business would be a. Decrease an asset and decrease liability O b. Increase an asset and decrease other asset O.c. Decrease an asset and decrease owners equity d. Increase an asset and increase a liability
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If an asset is purchased on credit. what is the effect on the accounting equation? a) Assets increase; liabilities increase b) Assets decrease: equity decreases c) Liabilities decrease: equity increases d) No effect on the accounting equation
If an asset is purchased on credit, what is the effect on the accounting equation? (a) Assets decrease; equity decreases (b) Assets increase; liabilities increase (c) Liabilities decrease; equity increases (d) No effect on the accounting equation Export need your help
If an asset is purchased on credit, what is the effect on the accounting equation? (a) Assets decrease; equity decreases (b) Assets increase; liabilities increase (c) Liabilities decrease; equity increases (d) No effect on the accounting equation ?

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A business purchased supplies on credit. What is the effect of this transaction on the accounting equation? a. Increase one asset and decrease another asset b. Increase an asset and increase a liability c. Decrease an asset and decrease a liability d. Increase an asset and increase owner's equity