What effects on a retail store's accounting equation occur when it records merchandise purchased for cash,assuming the use of a perpetual inventory system?

Question

Quizplus · Accepted Answer

In a perpetual inventory system, when merchandise is purchased for cash, one asset (inventory) increases while another asset (cash) decreases by the same amount, resulting in no net effect on the accounting equation.

What Effects on a Retail Store's Accounting Equation Occur When