Which of the following transactions would have no effect on total assets, total liabilities, or owner's equity?
A)payment of a liability
B)borrowing cash by issuing a note payable
C)purchasing supplies for cash
D)purchasing supplies on account

Question

Quizplus · Accepted Answer

Purchasing supplies for cash involves exchanging one asset (cash) for another asset (supplies), so total assets, total liabilities, and owner's equity remain unchanged.

Which of the Following Transactions Would Have No Effect on Total