A company purchases supplies on account,what is the effect on the accounting equation?
A)assets decrease; equity increases
B)assets decrease; equity decreases
C)liabilities decrease; equity decreases
D)liabilities increase; equity increases
E)liabilities increase; assets increase

Question

Quizplus · Accepted Answer

When a company purchases supplies on account, its assets (supplies) increase and its liabilities (accounts payable) also increase.

A Company Purchases Supplies on Account,what Is the Effect on the Accounting