If a company uses $$1,300$ of its cash to purchase supplies, the effect on the accounting equation woul

Multiple Choice

Assets increase $$1,300$ and liabilities decrease $$1,300.$

One asset increases $$1,300$ and another asset decreases $$1,300,$ causing no effect.

Assets decrease $$1,300$ and equity decreases $$1,300.$

Assets decrease $$1,300$ and equity increases $$1,300.$

Assets increase $$1,300$ and liabilities increase $$1,300.$