Paying a previously recorded invoice from a supplier (of supplies) involves:
A) Increasing Supplies and decreasing Cash
B) Decreasing Accounts Payable and decreasing Cash
C) Increasing Supplies and increasing Accounts Payable
D) Increasing Cash and decreasing Supplies
E) None of the above

Question

Quizplus · Accepted Answer

When you pay a previously recorded invoice from a supplier, it means you are settling a liability that was previously recorded as Accounts Payable. This decreases the Accounts Payable (as you no longer owe the supplier) and also decreases Cash (as you are paying out cash to settle the debt).

Paying a Previously Recorded Invoice from a Supplier (Of Supplies)