In the buyer's records, the purchase of merchandise on account would:
A)increase assets and increase expenses.
B)increase assets and increase liabilities.
C)increase liabilities and increase paid-in capital.
D)have no effect on total assets.

Question

Quizplus · Accepted Answer

When merchandise is purchased on account, inventory (an asset) increases, and accounts payable (a liability) also increases.

In the Buyer's Records, the Purchase of Merchandise on Account