Used up supplies that were already on hand

A) Increase assets, increase liabilities
B) Increase liabilities, decrease owner's equity
C) Increase assets, increase owner's equity
D) No effect
E) Decrease assets, decrease liabilities
F) Decrease assets, decrease owner's equity

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity, providing the foundation for double-entry bookkeeping.

Supplies

Items used in the operation of a business that are consumed or are not permanent, such as stationery, cleaning products, and office supplies.