Howard Company purchased $$300$ of supplies on account. Which of the following shows how this purchase will affect Howard$$s financial statements? The letters $$NA$$ and $$OA$$ indicate that the component of the equation is $$Not Affected$$ and $$Operating Activities$$ respectively.

Balance sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Equity Revenue $$ Expenses $=$ Net Income

A$.$ NA $=$ NA $+$ NA NA $$ NA $=$ NA $$OA

B$.300=300+$ NA NA $$ NA $=$ NA NA

C$.$ NA $=300+(300)$ NA $300=(300)$ NA

D$.(300)=$ NA $+(300)$ NA $300=(300)$OA

Multiple Choice

Option A

Option B

Option C

Option D