Orlando Company paid $620 cash to purchase raw materials.How would this transaction affect Orlando's financial statements? $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}
\hline {\text { Assets }} & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline \begin{array}{l|c|l}
\text { Cash } & + & \text { Raw } \
&&\text { Matls. } \
&&\text { Inv. }
\end{array} & & & & & & & & & \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The transaction decreases cash (an asset) by $620 and increases raw materials inventory (another asset) by $620, resulting in no net change in total assets, liabilities, or equity.

Orlando Company Paid $620 Cash to Purchase Raw Materials A) 620+(620)=NA+NANA−NA=NA\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|}\hline 620&+&(620)&=&NA&+&NA&NA&-&NA&=&NA\\\hline\end{array}620​+​(620)​=​NA​+​NA​NA​−​NA​=​NA​​

Orlando Company Paid $620 Cash to Purchase Raw Materials A) $\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|}\hline 620&+&(620)&=&NA&+&NA&NA&-&NA&=&NA\\\hline\end{array}$