question 5\nduring march, honeybaked spam purchases supplies for cash. the supplies will be used in april…

question 5\nduring march, honeybaked spam purchases supplies for cash. the supplies will be used in april. what effect does this transaction have on equation at the time the supplies are purchased?\no a. there is no effect on the accounting equation, as the transaction should not be recognized until april.\no b. there is no effect on the accounting equation, as one asset account increases while another asset account decreases.\no c. assets and liabilities increase\no d. assets increase and stockholders equity decreases

question 5\nduring march, honeybaked spam purchases supplies for cash. the supplies will be used in april. what effect does this transaction have on equation at the time the supplies are purchased?\no a. there is no effect on the accounting equation, as the transaction should not be recognized until april.\no b. there is no effect on the accounting equation, as one asset account increases while another asset account decreases.\no c. assets and liabilities increase\no d. assets increase and stockholders equity decreases

Answer

Brief Explanations:

When supplies are purchased for cash, cash (an asset) decreases and supplies (also an asset) increase. The accounting equation is Assets = Liabilities + Stockholders' Equity. Since one asset decreases and another increases, the net effect on total assets is zero, and there is no impact on liabilities or stockholders' equity.

Answer:

B. There is no effect on the accounting equation, as one asset account increases while another asset account decreases.