4\ Mulriple Choice\ aranta\ Assets decrease

$1,500

and equity decreases

$1,500

\ Assets increase

$1,500

and liabilities increase

$1,500

.\ Assets increase

$1,500

and liabilities decrease

$1,500

.\

Mc

\ Graw\ Prev.\ 4 of 20\ Next

If a company uses $1,500 of its cash to purchase supplies, the effect on the accounting equation would be: Muiriple Choice Assets decrease $1,500 and equity decreases $1,500. Assets increase $1,500 and liabilities increase $1,500. Assets increase $1,500 and liabilities decrease $1,500