A business purchases $500 of office supplies on account.What is the effect on the accounting equation?

Question

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When a business purchases office supplies on account, it means the supplies are bought now but will be paid for later. This increases the Office Supplies account (an asset) because the company now has more supplies. At the same time, Accounts Payable (a liability) increases because the company owes money for these supplies. The accounting equation (Assets = Liabilities + Equity) remains in balance because both sides increase by the same amount.

A Business Purchases $500 of Office Supplies on Account