The purchase of supplies on account would have an effect on the owner's equity of the firm.

Name: The purchase of supplies on account would have an effect on the owner's equity of the firm.
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Question

Quizplus · Accepted Answer

The purchase of supplies on account affects the assets and liabilities of the firm (increasing both supplies and accounts payable) but does not directly affect the owner's equity until the supplies are used or the financial impact of their use is realized.

The Purchase of Supplies on Account Would Have an Effect