Questions
25_1 AC160 Accounting Principles
Single choice
A company purchased supplies for $12,000 and paid cash for it. This transaction:
Options
A.A. Increased cash and increased supplies.
B.B. Increased cash and decreased supplies.
C.C. Decreased cash and increased supplies.
D.D. Decreased cash and decreased supplies.
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Step-by-Step Analysis
We start by restating the scenario: a company purchases supplies for $12,000 and pays cash. This is a straightforward asset exchange that affects two accounts.
Option A: Increased cash and increased supplies. This would imply the company somehow gained cash and supplies simultaneously, which is not th......Login to view full explanationLog in for full answers
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