Assume that data from the purchases transaction file have been transferred to the general journal transaction file. The general journal transaction file has been used to update the general ledger master file. What is the result if a trial balance is prepared at this time?
A) Inventory shows an increase, and accounts payable shows a decrease
B) Inventory shows a decrease, and accounts payable shows an increase
C) Inventory shows an increase, and accounts payable shows an increase
D) Inventory shows no change, and accounts payable shows no change

Question

Quizplus · Accepted Answer

When purchases are made, typically inventory increases because new stock is added, and accounts payable increases as well because the company owes money to suppliers for these purchases.

Assume That Data from the Purchases Transaction File Have Been