The acquisition of inventory for cash will:
A) increase liabilities and decrease stockholders' equity
B) decrease assets and decreases liabilities
C) leave total assets unaffected
D) have no effect on the accounting equation

Question

Quizplus · Accepted Answer

When inventory is purchased for cash, one asset (cash) decreases while another asset (inventory) increases by the same amount, leaving total assets unaffected.

The Acquisition of Inventory for Cash Will