Raw Materials of Inventory Were Purchased on Credit for $200

Multiple Choice

Raw materials of inventory were purchased on credit for $200 000 on 10 June.The company uses the perpetual method.This transaction will:

A) increase assets,liabilities and shareholders' equity.
B) increase assets and liabilities but reduce shareholders' equity.
C) increase liabilities but have no effect on assets or shareholders' equity.
D) increase assets and increase liabilities.