If a company uses $1,580 of its cash to purchase supplies, the effect on the accounting equation would be:Assets increase $1,580 and liabilities decrease $1,580.

One asset increases $1,580 and another asset decreases $1,580, causing no effect.

Assets decrease $1,580 and equity decreases $1,580.

Assets decrease $1,580 and equity increases $1,580.

Assets increase $1,580 and liabilities increase $1,580