For the Following Transaction,identify the Type of Change That Would

question 17

Multiple Choice

For the following transaction,identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Issued Capital + Opening retained profits + Revenue - Expenses - Dividends
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Inventory was purchased on credit.

• A) An asset increased and another asset decreased.
• B) An asset decreased and an expense increased.
• C) An asset decreased and a liability decreased.
• D) A liability increased and an asset increased.

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Definitions:

Potassium Chloride

A metal halide salt composed of potassium and chlorine, used in various applications including as a fertilizer, in medicine, and in food processing.

Lithium Bromide

A chemical compound used mainly in air conditioning systems as a desiccant due to its hygroscopic nature and in some pharmaceuticals; its formula is LiBr.

Electrolytes

Minerals in your body that have an electric charge, crucial for various bodily functions including nerve signaling and fluid balance.

Inorganic Compound

A chemical compound that lacks carbon-hydrogen bonds, typical of non-living chemical systems.