If Accounts Payable has been credited, it is most likely that
A) a collection from a customer was made.
B) a service was provided to a cash customer.
C) the company made a purchase on account.
D) None of these are possible.

Question

Quizplus · Accepted Answer

When accounts payable is credited, it means a liability has been decreased. The only possible explanation for this is that the company made a purchase on account and subsequently made a payment, decreasing the accounts payable balance.

If Accounts Payable Has Been Credited, It Is Most Likely