If Accounts Payable has been credited, it is most likely that
A) a payment was made on account.
B) a purchase was made on account.
C) a correcting entry was made for the overstatement of the purchase of equipment on account.
D) None of these are possible.

Question

Quizplus · Accepted Answer

When Accounts Payable is credited, it typically indicates that a liability has increased, which happens when a purchase is made on account, not when a payment is made or a correcting entry for an overstatement is recorded.

If Accounts Payable Has Been Credited, It Is Most Likely