Tracking and recording expenses will reduce the asset account of cash to relieve the:
A) notes receivable.
B) accounts receivable.
C) inventory.
D) accounts payable.

Question

Quizplus · Accepted Answer

Tracking and recording expenses will reduce the asset account of cash and typically increase the accounts payable if the expenses are being recorded on credit, or decrease it if a payment is made. Notes receivable and accounts receivable are assets that represent money to be received from others, and inventory is an asset account that tracks goods to be sold.

Tracking and Recording Expenses Will Reduce the Asset Account of Cash