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Which the effect on the accounting equation of the business

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Reference no: EM132929436

Problem 1: The effect on the accounting equation of the business purchasing $5,000 Inventory on cash

a. An increase in the asset Inventory of $5,000 and a decrease in the liability Accounts payable of $5,000.

b. An increase in the asset Inventory of $5,000 and a decrease in the asset Cash of $5,000.

c. A decrease in the asset Inventory of $5,000 and an increase in the liability Accounts payable of $5,000.

d. An increase in the asset Inventory $5,000 an increase in the liability Accounts payable of $5,000.

Reference no: EM132929436

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