Which of the following statements is false when Mama June Pizza Company paid $47,000 cash on accounts owed to suppliers?
A)The cash account was credited for $47,000.
B)Accounts payable was debited for $47,000.
C)Supplies expense was increased by $47,000.
D)Operating income was not changed by the payment to the suppliers.

Question

Quizplus · Accepted Answer

Paying cash to suppliers would decrease the balance of the accounts payable account, not increase an expense account like supplies expense. The correct journal entry would be to debit accounts payable and credit cash. The payment would also not affect operating income directly.

Which of the Following Statements Is False When Mama June