Ma company uses 1,350 of its cash to purchase supplies, the effect on the accounting equation would be: Multiple Choice Assets increase 1,350 and liabilities decrease 1,350 One asset increases 1,350 and another asset decreases 1,350 causing no effect. Assets decrease 1,350 and equity decreases 1,350 Assets decrease 1,350 and equity increases 1,350. Assets increase 1,350 and labilities increase 1,350

The correct answer is:<br /><br />One asset increases $\$ 1,350$ and another asset decreases $\$ 1,350$ causing no effect.<br /><br />Explanation:<br />When a company uses its cash (an asset) to purchase supplies (another asset), the total amount of assets remains the same. The cash account decreases by $\$ 1,350$, and the supplies account increases by $\$ 1,350$. This transaction does not affect liabilities or equity.