Examine the financial statements effects template below. Then select the answer that best describes the transaction.

Balance Sheet									Income Statement
Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital	Revenues		Expenses	=	Net Income
(600)		600	=									=

Select one:

a. Purchase inventory of $600 for cash

b. Purchase inventory of $600 on account

c. Repay accounts payable of $600 with cash

d. None of these are correct

e. Collect cash for accounts receivable of $600