If a company uses $$1,400$ of its cash to purchase supplies, the effect on the accounting equation would be:

Multiple Choice

Assets increfise $$1,400$ and liabilities decrease $$1,400.$

One asset increases $$1,400$ and another asset decreases $$1,400,$ causing no effect.

Assets decrease $$1,400$ and equity decreases $$1,400.$

Assets decrease $$1,400$ and equity increases $$1,400.$

Assets increase $$1,400$ and liabilities increase $$1,400.$