$400.00 cash was used to reduce the accounts payable of a business. Which of the
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Question
$400.00 cash was used to reduce the accounts payable of a business. Which of the following accurately reflects the transaction?a. credit cash/credit accounts payable
b. debit cash/credit accounts payable
c. debit cash/debit accounts payable
d. credit cash/debit accounts payable
Analyze the following transaction for its effect on a business. Bought supplies for $6,800.00 cash.
a. assets increase/assets decrease
b. assets decrease/owners' equity increases
c. assets increase/liabilities decrease
d. assets decrease/liabilities increase
Explanation / Answer
a) c. debit cash/debit accounts payable a credit to Accounts Payable will increase the balance in Accounts Payable, and a debit to Accounts Payable will decrease the balance. b.) a. assets increase/assets decrease You now have new supplies for your business, but also lose money you could have put somewhere else.
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