Indicate which effect(s) each situation will have:

-________ Bought Supplies on account
A)New check written
B) Recorded in the general journal
C) Recorded in auxiliary petty cash record
D) Petty cash voucher prepared

Question

Indicate which effect(s) each situation will have:

-________ Bought Supplies on account
A)New check written
B) Recorded in the general journal
C) Recorded in auxiliary petty cash record
D) Petty cash voucher prepared

Quizplus · Accepted Answer

Buying supplies on account means the transaction is recorded as a liability (accounts payable) and an asset (supplies) in the general journal. It does not involve writing a check, using petty cash, or preparing a petty cash voucher.

Indicate Which Effect(s) Each Situation Will Have