Purchasing supplies on account will increase both assets and liabilities.

Name: Purchasing supplies on account will increase both assets and liabilities.
Brand: Quizplus
Rating: 4.7 (44 reviews)

Question

Quizplus · Accepted Answer

When supplies are purchased on account, it means that the payment for those supplies will be made at a later date. This transaction results in an increase in assets (supplies) and an increase in liabilities (accounts payable). Therefore, both assets and liabilities will increase.

Purchasing Supplies on Account Will Increase Both Assets and Liabilities