A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.)Which account is credited?

Name: A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.)Which account is credited?
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

When a business makes a cash payment to a supplier on account, it means they are paying off a previous credit purchase. This decreases the company's Cash account (an asset), so Cash is credited to reflect the outflow.

A Business Makes a Cash Payment to a Supplier "On