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29 July, 06:08

Norman Company had a transaction that increased its assets by $5,000 and increased its liabilities by $5,000. This transaction could have been a (n) a. payment for a one-year insurance policy that will expire next year. b. purchase of office equipment for cash. c. purchase of supplies for on account. d. payment of a dividend. e. investment of cash into the business by the stockholders.

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  1. 29 July, 09:09
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    The answer is: C) purchase of supplies for on account.

    Explanation:

    When Norman Company bought office supplies it will record them as supplies on hand, which are a type of current asset.

    When you buy things on account, it means that you will pay the purchase at a later date, so a liability must be recorded.
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