Consideration assumption. 23) If a company uses $1,300 of Its cash to purchase Inventory, the effect on the accounting equation would be: A) Assets Increase $1,300 and liabilities decrease $1,300. B) One asset increases $1,300 and another asset decreases $1,300, causing no effect. C) Assets decrease $1,300 and equity decreases $1,300. D) Assets decrease $1,300 and equity increases $1,300. E) Assets increase $1,300 and liabilities increase $1,300.