Danny Company purchased supplies using cash.What is the effect on Danny's balance sheet?
A)No effect on total assets;decrease total liabilities;increase total stockholders' equity
B)Increase total assets;increase total liabilities;increase total stockholders' equity
C)Decrease total assets;no effect on total liabilities;increase total stockholders' equity
D)No effect on total assets;no effect on total liabilities;no effect on total stockholders' equity

Question

Quizplus · Accepted Answer

The purchase of supplies using cash decreases Cash,an asset account,and increases Supplies,another asset account;as a result,total assets are unchanged.This transaction does not affect liabilities or stockholders' equity.

Danny Company Purchased Supplies Using Cash