The Central Warehouse Internal Service Fund Purchased $15,000 of Inventory

Multiple Choice

The Central Warehouse Internal Service Fund purchased $15,000 of inventory on account, which was unpaid as of the month end. Which of the following statements regarding the accounting for the transaction is false?

A) Expenses in the Internal Service Fund will increase.
B) Capital assets recorded in the Internal Service Fund remain unchanged.
C) The transaction will increase total assets.
D) The transaction will increase total liabilities.