Which of the following transactions will record the payment of an $850 accounts payable originally incurred for Office Supplies?
A) Increase Office Supplies; decrease Cash
B) Increase Office Supplies; increase Accounts Payable
C) Increase Cash; increase Accounts Payable
D) Decrease Accounts Payable; decrease Cash

Question

Quizplus · Accepted Answer

Paying off an accounts payable for office supplies involves reducing the liability (Accounts Payable) and decreasing the asset (Cash) to reflect the payment made.

Which of the Following Transactions Will Record the Payment of an $850