The business bought supplies with cash.To record this:

Name: The business bought supplies with cash.To record this:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When supplies are bought with cash, the business's cash account is decreased (debit) and the supply inventory account is increased (credit). Both accounts are assets, hence option B is correct. Option A is incorrect because a liability is not involved here. Option C is incorrect as there is no liability in the transaction. Option D is incorrect as option B is correct.

The Business Bought Supplies with Cash.To Record This