Purchasing Supplies on Account Increases Liabilities and Decreases Equity

question 54

True/False

Purchasing supplies on account increases liabilities and decreases equity.

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Definitions:

Tax Rate

The share of financial gain upon which the government imposes taxes on entities or individuals.

MACRS Depreciation

A method of depreciation in the United States that allows for accelerated depreciation of assets under the tax code.

Incremental Cash Flow

is the additional operating cash flow that an organization receives from taking on a new project.