If Accounts Payable has been credited, it is most likely that:
A) a sale 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) a customer paid a bill on account.

Question

Quizplus · Accepted Answer

When Accounts Payable is credited, it typically indicates that a purchase was made on account, meaning the company has incurred a liability to pay a supplier in the future.

If Accounts Payable Has Been Credited, It Is Most Likely