If a company uses 1430 of its cash to purchase supplies the effect on the accounting equation would be?

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1267021

2026-04-06 18:50

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When a company uses $1,430 of its cash to purchase supplies, the accounting equation (Assets = Liabilities + Equity) is affected by a decrease in cash (an asset) and an increase in supplies (also an asset). The overall total of assets remains unchanged since one asset is exchanged for another. Therefore, there is no impact on liabilities or equity.

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