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The Business Completes a Purchase Order for the Purchase of More

Question 14

Multiple Choice

The business completes a purchase order for the purchase of more inventory at a cost of $1500.The immediate effect on the accounting equation is to:


A) increase asset inventory by $1500 and decrease the asset cash by $1500.
B) decrease the asset cash by $1500 and increase expenses by $1500.
C) increase liabilities by $1500 and increase asset inventory by $1500.
D) no effect as this is not recognised as a business transaction until the inventory is received.

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