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

Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/03/12

Upvote (1) Views (15) Followers (2) Answers (7) Report Question

by GEORGE T G , ASSISTANT FINANCE MANAGER , Dar Al Shifa Hospital

No effect

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 .

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

c. have no effect on total assets

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

by Rihan Najimudeen , Auditor , BDO international

Have no effect on assets

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

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! :-)

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