TB MC Qu. 01-113 If a company uses... 3 If a company uses $1.450 of its cash to purchase supplies, the effect on the accounting equation would be: Multiple Choice 0121.55 O Assets decrease $1.450 and equity increases $1,450 One asset increases $1,450 and another asset decreases $1.450, causing no effect. Assets increase $1,450 and liabilities decrease $1,450. Assets increase $1,450 and liabilities increase $1,450. Assets decrease $1,450 and equity decreases $1450