Complete this question by entering your answers in the tabs below.

Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transaction it

properly describes.

Reason

This transaction is a distribution of cash to the owner. Even though equity decreased, that decrease did not occur in the

process of providing goods or services to customers.

This transaction decreased cash in settlement of a previously existing liability $($equity did not change$).$ Supplies expense is

recorded when assets are used, not necessarily when cash is paid.

This transaction involves the purchase of an asset. The form of the company's assets changed, but total assets did not $($and

neither did equity$).$