If the purchase of supplies on account is not recorded then:
A)liabilities will be overstated.
B)expenses will be overstated.
C)cash will be understated.
D)assets will be understated.

Question

Quizplus · Accepted Answer

The entry that should be recorded includes a debit to Supplies (to increase this asset account)and credit to Accounts Payable (to increase this liability account).If that entry is not recorded,assets and liabilities will both be understated.

If the Purchase of Supplies on Account Is Not Recorded