Which of the following transactions will cause a liability to be credited and an asset account to be debited when the perpetual inventory system is in use?
A) Recorded the adjustment for depreciation
B) Recorded the adjustment for the consumption of supplies
C) Purchased merchandise inventory on account
D) Purchased office supplies on account

Question

Quizplus · Accepted Answer

When merchandise inventory is purchased on account under the perpetual inventory system, the inventory (an asset) is debited to reflect the increase in inventory, and accounts payable (a liability) is credited to reflect the obligation to pay the supplier in the future.

Which of the Following Transactions Will Cause a Liability to Be