Tumbler, Inc. purchased office supplies on account for $50,000. How would this transaction affect Tumbler's accounting equation?

Question

Quizplus · Accepted Answer

Tumbler's purchase of office supplies on account for $50,000 would increase their assets by $50,000 (as they now have $50,000 worth of supplies) and increase their liabilities by $50,000 (as they owe this amount to their supplier). Therefore, the appropriate choice is D, which reflects the increase in both assets and liabilities.