Question: Which statement is correct? 1. When a company purchases goods on cash the total of the balance sheet increases. 2. When a company purchases goods

Which statement is correct?

1. When a company purchases goods on cash the total of the balance sheet increases.

2. When a company purchases goods on cash the total of the balance sheet decreases.

3. When a company purchases goods on cash the total of the balance sheet does not change.

4. When a company purchases goods and pays by bank transfer the total of the balance sheet increases.

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