Question

If supplies that have been purchased are used in the course of business, then__________

a. a liability will increase.
b. an asset will increase.
c. owner's equity will decrease.
d. owner's equity will increase.

Answer 1

If supplies that have been purchased are used in the course of business, then an asset will increase.

Step-by-step explanation:

If supplies that have been purchased are used in the course of business, then an asset will increase.

When supplies are used in the course of business, they are typically considered as an expense, and this reduces the owner's equity. However, since supplies are assets, the reduction in owner's equity is offset by the increase in assets. Therefore, the correct answer is

an asset will increase

.