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A Purchase Impact on the Accounting Equation

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A business purchases $5,000 of supplies on credit. How does this impact the accounting equation?

Assets Liabilities Owner's Equity
A) Decrease Increase Increase
B) Increase Decrease No effect
C) Increase Increase No effect
D) Increase No effect Increase.

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Solution Summary

This solution provides the correct answer with explanation to the accounting equation question presented.

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