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A cash purchase of supplies would:

<p>(a) Decrease owner’s equity</p> <p>(b) Increase liabilities </p> <p>(c) Have no effect on total assets</p> <p>(d) None of these</p>

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Question added by Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh
Date Posted: 2014/09/26
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

(c) Have no effect on total assets

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Supplies ......... xxxx

         Cash ................ xxxx

 This shows an increase in one asset and a decrease in an other asset so it has no effect on the balance of the total assets.

So, Choice C is the answer for this question

  

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

The correct answer is C

Sara Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

C

Kamran Anjum
by Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

Yes option C) is the right answer. You are right Divyesh

Ahmad Raja Suliman Ahmad
by Ahmad Raja Suliman Ahmad , Senior Finance Officer , Good Neighbors International

a Decrease  Cash &  increase supplies and this accounts belong to assets 

then value of decreases in cash it's same value of increase in supplies. 

(No affect on  total assets)

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

ANSWER C 

 

NO EFFECT 

 

INCREAASE IN CURRENT ASSETS " GOODS " = DECREASE IN CURRENT ASSET " CASH "

Abdallah Abu Zeyad CMA
by Abdallah Abu Zeyad CMA , Finance Account Manager , Toyota - Abdul Latif Jameel Motors - KSA

C) No Effect on the Total Assets

Because both of them is Current Assets.

Vishnu Agrawal Vishnu
by Vishnu Agrawal Vishnu , Associate , TransSys Solutions Private Limited

None of these !!

Deleted user
by Deleted user

C ............. is the answer

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Answer C is the correct answer

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