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Purchasing supplies and paying cash for them would?

a. increase total assets b. decrease total assets c. have no effect on total assets d. increase total liabilities and stockholders’ equity

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Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/03/12
GEORGE T G
by GEORGE T G , ASSISTANT FINANCE MANAGER , Dar Al Shifa Hospital

No effect

khaled Ibrahim Sayed Abd El Salam Ibrahim
by khaled Ibrahim Sayed Abd El Salam Ibrahim , Chief Accountant , -ElMehy engineering company

Big Yes (( C )) because its supplies and not related to Assets or StockHolder's equtiy .

Ajay Kumar Tiwari
by Ajay Kumar Tiwari , FP&A Manager , Capgemini Technology Services

c. have no effect on total assets

Saad fajene
by Saad fajene , financial project manager , Mercedes Benz Bank

There are I effect cause we are decrease the cash and this asserts and. At the same moment we are increase the inventory. So no effect will  

Rihan Najimudeen
by Rihan Najimudeen , Auditor , BDO international

Have no effect on assets

 

Zain Ul Abideen Mughal
by Zain Ul Abideen Mughal , Manager Finance and Operations , Oasis School (Trust)

C

Kevin Simms
by Kevin Simms , Assistant Management Accountant , HS Admin

No effect overall as reduction is cash is matched by increase in inventory.

 

Not good for cashflow paying in cash though! :-)