When a computer is bought on account, the result is
A) an increase in the asset Computer and an increase in the liability Accounts Payable.
B) an increase in the asset Computer and a decrease in the liability Accounts Payable.
C) a decrease in the asset Computer and an increase in the liability Accounts Payable.
D) a decrease in the asset Computer and a decrease in the liability Accounts Payable.

Question

Quizplus · Accepted Answer

Buying a computer on account increases the asset "Computer" because the company now owns a new asset. It also increases the liability "Accounts Payable" because the company owes money for the purchase.

When a Computer Is Bought on Account, the Result Is