The purchase of inventory affects both an asset and the Stockholders' Equity account.

Name: The purchase of inventory affects both an asset and the Stockholders' Equity account.
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Question

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The purchase of inventory affects an asset account (increases inventory) and either decreases another asset account (like cash) or increases a liability account (like accounts payable) but does not directly affect the Stockholders' Equity account.

The Purchase of Inventory Affects Both an Asset and the Stockholders