Which accounts are affected when the company buys supplies on account?
A) Assets and Capital increase.
B) Liabilities and Capital increase.
C) Assets and Liabilities increase.
D) None of the above are correct.

Question

Quizplus · Accepted Answer

When a company buys supplies on account, its assets (supplies) increase because it has more supplies, and its liabilities increase because it owes money for those supplies.

Which Accounts Are Affected When the Company Buys Supplies on Account