A business purchases $500 of office supplies on account. What is the effect on the accounting equation?
A.
Office Supplies increase and Accounts Payable decrease
B.
Office Supplies increase and Cash decreases
C.
Total assets increase and total liabilities decrease
D.
Office Supplies increase and Accounts Payable increase
Journal:
Office supplies a/c...Dr$500
To accounts payable $500
Hence office supplies(assets) balance would increase while liabilities balance (Accounts payable) would also increase.
Hence the correct option is:
Office Supplies increase and Accounts Payable increase
A business purchases $500 of office supplies on account. What is the effect on the accounting...
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