Ask Question
4 February, 23:39

Cool Taste Company purchased $1,500 of supplies with cash. What effect does this transaction have on the accounting equation?

+4
Answers (1)
  1. 5 February, 03:30
    0
    None

    Explanation:

    This transaction has a nil effect on the accounting equation.

    The accounting equation is as given below;

    Assets = Liabilities + Equity

    The purchase of supplies with cash is a credit to cash and a debit to inventory. This represents a decrease in one asset and an increase in another of the same amount.

    Hence no change happens to the equation.

    The liabilities and equity account are not affected by the transaction.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Cool Taste Company purchased $1,500 of supplies with cash. What effect does this transaction have on the accounting equation? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers