Question

For each of the transactions in items 1 through 5, indicate the effects on the accounting equation elements.

The company purchases supplies on credit- The Asset account does the following

A. Increase
B. decrease
C. No effect

Answer 1

The correct answer is that the asset account would increase so A.

Explanation:

Credit on the right side would be shonw but as far as assets go you just gained new equiment. =D I am 10000% positive too ; )

Have a great day!