Consider the transactions listed. Match them to the financial statement effects listed
-Purchase inventory for cash
A) Decrease assets and decrease equity
B) Decrease liabilities and decrease assets
C) Increase assets and decrease assets
D) Increase assets and increase equity

Question

Quizplus · Accepted Answer

Purchasing inventory for cash increases inventory (an asset) and decreases cash (also an asset), thus increasing one asset while decreasing another.

Consider the Transactions Listed