If supplies that have been purchased are used in the course of business then
A) a liability will increase.
B) an asset will increase.
C) owner's equity will decrease.
D) owner's equity will increase.

Question

Quizplus · Accepted Answer

When supplies are used in the course of business, it represents an expense. Expenses decrease owner's equity because they reduce the net income, which in turn reduces the owner's claim on the business assets.

If Supplies That Have Been Purchased Are Used in the Course