Answered: If a business paid cash for supplies,…

If a business paid cash for supplies, it would increase assets, assets O assets, owner's equity O owner's equity, liabilities Oliabilities, assets and decrease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If a business paid cash for supplies, it would increase
assets, assets
O assets, owner's equity
O owner's equity, liabilities
Oliabilities, assets
and decrease

Expert Solution

Step 1

An asset is any resource owned or controlled by a business or an economic entity.

Asset Includes cash in checking accounts, petty cash, and deposit accounts. Receivables. Includes trade receivables and receivables due from employees, Inventory, Includes raw materials, work-in-process, and finished goods.

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