Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-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

Question

Quizplus · Accepted Answer

Using up supplies that were already on hand would decrease assets (supplies) and decrease owner's equity (as a result of an expense being incurred). Therefore, the best choice is F, which reflects a decrease in assets and a decrease in owner's equity.

Match Each Transaction with Its Effect on the Accounting Equation