Expenses do not have to be paid in cash at the time they are incurred. When payment is made on a later date, the liability accounts payable account will decrease and the asset

Name: Expenses do not have to be paid in cash at the time they are incurred. When payment is made on a later date, the liability accounts payable account will decrease and the asset
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When expenses are paid later, cash decreases as it is used to settle the liability, reducing both cash and accounts payable.

Expenses Do Not Have to Be Paid in Cash at the Time