If a company uses $1,430 of its cash to purchase supplies, the effect on the accounting equation would be: Assets decrease $1,430 and equity decreases $1.430. Assets decrease $1,430 and equity increases $1,430. One asset increases $1,430 and another asset decreases $1,430, causing no effect. Assets increase $1,430 and liabilities decrease $1.430.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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If a company uses $1,430 of its cash to purchase supplies, the effect on the
accounting equation would be:
Assets decrease $1,430 and equity decreases $1,430.
Assets decrease $1,430 and equity increases $1.430.
One asset increases $1,430 and another asset decreases $1,430, causing no
effect.
Assets increase $1,430 and liabilities decrease $1.430.
Transcribed Image Text:If a company uses $1,430 of its cash to purchase supplies, the effect on the accounting equation would be: Assets decrease $1,430 and equity decreases $1,430. Assets decrease $1,430 and equity increases $1.430. One asset increases $1,430 and another asset decreases $1,430, causing no effect. Assets increase $1,430 and liabilities decrease $1.430.
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