If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:
A. One asset increases $1,300 and another asset decreases $1,300, causing no effect.
B. Assets increase $1,300 and liabilities decrease $1,300.
C. Assets decrease $1,300 and equity increases $1,300.
D. Assets increase $1,300 and liabilities increase $1,300.
E. Assets decrease $1,300 and equity decreases $1,300.
Answer: A
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