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AI Practice TestQuestion 7 / 100 · Accounting I

A company purchases supplies on account. Which accounts are affected, and how?

ADebit Supplies, credit Cash
BDebit Supplies, credit Accounts Payable
CDebit Accounts Payable, credit Supplies
DDebit Cash, credit Supplies
WHYBuying on account means you owe later, so Accounts Payable (a liability) is credited while Supplies (an asset) is debited.
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