The purchase of supplies i.e. goods for cash will result in a / an ___.

increase in cash and a decrease in capital

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increase in cash and an increase in supplies

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increase in purchases and a decrease in cash

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increase in equipment and an increase in capital

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Solution

The correct option is C
increase in purchases and a decrease in cash

Purchase account is increased & it shall be debited while cash will be reduced & hence it shall be credited.

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Similar questions

Q. The purchase of supplies for cash will result in an _______________.

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
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(iv) Sale fo Goods on Credit.
(v) Purchase of a fixed asset by issue of shares.

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The purchase of supplies i.e. goods for cash will result in a / an ___.

The correct option is C increase in purchases and a decrease in cash Purchase account is increased & it shall be debited while cash will be reduced & hence it shall be credited.

The correct option is C
increase in purchases and a decrease in cash

Purchase account is increased & it shall be debited while cash will be reduced & hence it shall be credited.