A business purchased supplies on credit. The effect of this transaction on the accounting equation is to Increase one asset and decrease another asset. Increase an asset and increase a liability Decrease an asset and decrease a liability Increase an asset and increase owner's equity. A general journal is: A book of accounts. Only used by the corporate form of business organization. One of the required financial statements. A book of original entry maintained in chronological order. Indicate which SECTION of the balance sheet, if any, the following accounts would appear: Current Asset. Current liability Long-term Asset. Long-term Liability None of the preceding