A liability would be debited and an asset credited if:
A) the business paid a creditor.
B) the business incurred an expense and did not pay the expense immediately.
C) the business bought supplies on account.
D) the business bought supplies for cash.

Question

Quizplus · Accepted Answer

When a business pays a creditor, it decreases its liabilities (hence, debits the liability account) and also decreases its assets (specifically cash or cash equivalents, hence, credits the asset account).

A Liability Would Be Debited and an Asset Credited If