When supplies are paid in cash,which of the following would hold true?
A)Total assets will increase.
B)Total assets will decrease.
C)Total assets will remain unchanged.
D)Total liabilities will decrease.

Question

Quizplus · Accepted Answer

When supplies are paid in cash, there is an exchange of one asset (cash) for another asset (supplies). This transaction has no effect on total assets, and so choice C is the correct answer.

When Supplies Are Paid in Cash,which of the Following Would