If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:
A) Assets decrease $1,300 and equity decreases $1,300.
B) Assets increase $1,300 and liabilities decrease $1,300.
C) Assets increase $1,300 and liabilities increase $1,300.
D) One asset increases $1,300 and another asset decreases $1,300, causing no effect.
E) Assets decrease $1,300 and equity increases $1,300.
Correct Answer:
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