The purchase of supplies for cash will result in an _______________.
Increase in cash and a decrease in capital
Increase in cash and an increase in supplies
Increase in supplies and a decrease in cash
Increase in equipment and an increase in capital
A
Increase in supplies and a decrease in cash
B
Increase in cash and a decrease in capital
C
Increase in equipment and an increase in capital
D
Increase in cash and an increase in supplies
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Solution
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As supplies are purchase therefore, the balance of supplies will increase and the balance od cash will decrease.
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