Purchasing supplies on account would:
A)increase total assets and decrease total liabilities.
B)increase total liabilities and decrease total assets.
C)increase total assets and increase total liabilities.
D)increase total liabilities and increase stockholders' equity.

Question

Quizplus · Accepted Answer

Purchasing supplies on account increases total assets (supplies) and increases total liabilities (accounts payable), as the company owes money for the supplies purchased but hasn't paid cash yet.

Purchasing Supplies on Account Would