All else equal, when a firm purchases raw materials on credit from its supplier, which of the following accounts is affected?

Name: All else equal, when a firm purchases raw materials on credit from its supplier, which of the following accounts is affected?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Purchasing raw materials on credit from a supplier means the firm owes the supplier money, creating a liability for the firm. This liability is recorded in the accounts payable account.

All Else Equal, When a Firm Purchases Raw Materials on Credit