Which of the following accounts will increase when purchasing raw materials on account?
A) Revenues and Accounts Receivables
B) Cash and Miscellaneous Expenses
C) Liabilities and Revenues
D) Assets and Liabilities
E) Assets and expenses

Question

Which of the following accounts will increase when purchasing raw materials on account? ​
A) Revenues and Accounts Receivables
B) Cash and Miscellaneous Expenses
C) Liabilities and Revenues
D) Assets and Liabilities
E) Assets and expenses

Quizplus · Accepted Answer

When purchasing raw materials on account, the asset account (Raw Materials Inventory) increases because the company now owns more materials. The liability account (Accounts Payable) also increases because the company owes money to the supplier for those materials. Therefore, the correct answer is D, Assets and Liabilities. None of the other options accurately represent accounts that would increase as a result of purchasing raw materials on account.

Which of the Following Accounts Will Increase When Purchasing Raw