Question

When merchandise is bought for resale, which of the following accounts would decrease?

A-store equipment
B- purchased
C- cash
D- capital


answer is C- cash

Answer 1

C- cash

Step-by-step explanation:

in this case a purchase means that cash was used to acquired the merchandise, therefore this account must decrease.

Store equipment refers tom supplies and they increase as new inventory was bought

Purchased increase as new inventory was bought

capital is not touch as it is the equity stablished to run the business.