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

Question

Quizplus · Accepted Answer

Accounts Payable is a liability account that represents money owed to suppliers or vendors. When a company makes a purchase on account, its Accounts Payable account is credited to reflect the increase in the liability. Therefore, option C is the correct choice.

If Accounts Payable Has Been Credited,it Is Most Likely That