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TB MC Qu. 01-113 If a company uses... 2. If a company uses $1.410 of its cash to purchase supplies, the effect on the account
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Answer #1

Answer B. One asset increase $1,410 and another asset decreases $1,410, causing no effect

As the entry for above transaction is

supplies DR $1,410

cash CR $1,410

Hence there is no total effect on asset as within assets class, one asset (supplies) increased and another asset (cash) decreased.

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