If a General Fund Purchases Capital Assets with Cash, What

If a General Fund purchases capital assets with cash, what effect will this transaction have on the assets and fund balance, respectively, of the fund?

A) Neither assets nor fund balance will change (the increase in capital assets will offset the decrease in cash) .
B) Both assets and fund balance will increase.
C) Both assets and fund balance will decrease.
D) No effect since the purchase is recorded only in the General Capital Assets account.