Asked by Denia Drake on May 08, 2024
Verified
Purchasing supplies for cash results in an increase in total assets for the purchasing company.
Total Assets
The sum of all assets owned by an entity, including both current and noncurrent assets, as reported on the balance sheet.
Purchasing Supplies
The act of obtaining materials, goods, or tools needed to operate a business or complete a task.
- Developing an understanding of the way transactions are documented and their resultant effect on the accounting equation and financial statements.
Verified Answer
MM
Maxwell MarfoMay 10, 2024
Final Answer :
False
Explanation :
Purchasing supplies for cash decreases one asset (cash) while increasing another (supplies), leaving total assets unchanged.
Learning Objectives
- Developing an understanding of the way transactions are documented and their resultant effect on the accounting equation and financial statements.