A business purchases $500 of office supplies on account.Which of the following accounts is credited?

Question

Quizplus · Accepted Answer

Since the purchase was made on account, there wasn't any cash involved. Therefore, options A and D can be eliminated. Also, since office supplies were purchased, it makes sense to credit the account that tracks money owed to suppliers for those types of purchases, which is Accounts Payable. Therefore, the correct answer is B. Option C is not the correct choice because it is the asset account that reflects the value of the purchased office supplies, and it would be debited in this transaction.

A Business Purchases $500 of Office Supplies on Account