Bob purchased a new computer for the company for cash.The transaction will:
A)increase Computer;increase Capital.
B)decrease Cash;increase Accounts Payable.
C)decrease Cash;increase Computer.
D)increase Computer;increase Accounts Payable.

Question

Quizplus · Accepted Answer

When Bob purchases a new computer for the company for cash, the cash account will decrease because cash is being paid out. The computer account will increase because a new asset has been added to the company's inventory. Therefore, the correct choice is C, which indicates that cash decreases and computer increases.

Bob Purchased a New Computer for the Company for Cash