What account increases when raw materials are purchased on account?

Name: What account increases when raw materials are purchased on account?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When raw materials are purchased on account, it means that the company has received the goods but has not yet paid for them. This creates a liability for the company, as they are obligated to pay the supplier at a later date. Therefore, the account that increases when raw materials are purchased on account is liabilities.

What Account Increases When Raw Materials Are Purchased on Account