During March, Connor Corporation purchased supplies for cash. The supplies will be used in April. What effect does this transaction have on the accounting equation at the time the supplies are purchased?

A) Assets increase and stockholders' equity decreases
B) Assets and liabilities increase
C) There is no net effect on the accounting equation, as one asset account increases while another asset account decreases.
D) There is no net effect on the accounting equation, as the transaction should not be recognized until April.


C

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d) =B1/(1-B1)^2 and =1/(1-B1)^2
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