Asked by Jaydan MacMaster on Apr 29, 2024
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Purchasing supplies on account increases liabilities and decreases equity.
Purchasing Supplies
The process of acquiring the goods and materials a company needs to operate.
Increases Liabilities
Refers to events or transactions that result in a rise in the amounts owed by a company, such as taking on new loans or issuing bonds.
Decreases Equity
Activities or transactions that reduce the owner's equity in a company, often through expenses, losses, or distributions to owners.
- Familiarize oneself with the primary aspects and associations of the accounting equation (Assets = Liabilities + Owner's Equity).
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Learning Objectives
- Familiarize oneself with the primary aspects and associations of the accounting equation (Assets = Liabilities + Owner's Equity).
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