Asked by Achera Weaver on May 18, 2024

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Eileen's Corner Shoppe purchases a desk for cash. This causes:

A) Cash and Capital to increase.
B) Furniture and Cash to increase.
C) Furniture to increase and Cash to decrease.
D) Accounts Payable to increase and Capital to increase.

Furniture

Movable articles intended to support various human activities such as seating, eating, and sleeping, often used to outfit a living or working space.

Cash

Money in the form of currency that can be used immediately for transactions, considered the most liquid asset.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to start or operate a business.

  • Learn about the repercussions of procurement and disposal transactions on business financial statements.
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AK
Adelina KorcariMay 20, 2024
Final Answer :
C
Explanation :
Purchasing a desk for cash increases the Furniture account (an asset) because the desk is a tangible asset now owned by the business. At the same time, Cash (another asset) decreases because cash is used to pay for the desk.