Indicate how the following transactions affect the accounting equation: The purchase of supplies on account. a. Assets increase; liabilities increase b. The purchase of supplies for cash. No effect Payment of cash dividends to stockholders. C. Revenues received in cash. d. quity increases Assets decrease; stockholders' equity decreases Sale made on account. e. Assets increase; liabilities increase Assets increase; stockholders' equity increases No effect Indicate how the following transactions affect the accounting equation: The purchase of supplies on account. a. Assets increase; liabilities increase b. The purchase of supplies for cash. No effect Payment of cash dividends to stockholders. C. Revenues received in cash. d. quity increases Assets decrease; stockholders' equity decreases Sale made on account. e. Assets increase; liabilities increase Assets increase; stockholders' equity increases No effect