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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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Accounting & FinanceObjective Test

Accounting I

Foundational accounting concepts: the accounting equation, journals, ledgers, financial statements, and adjusting entries.

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Accounting & FinanceObjective Test

Accounting II

Advanced accounting: corporate accounting, manufacturing, departmental accounting, and managerial decision-making.

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Accounting & FinanceObjective Test

Personal Finance

Budgeting, credit, investing, insurance, taxes, and major life-stage financial planning.

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Business ManagementObjective Test

Business Management

Management theory, organizational behavior, strategy, operations, and leadership.

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Communication & Public SpeakingObjective Test

Business Communication

Grammar, mechanics, business writing, and professional communication conventions.

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Business ManagementObjective Test

Economics

Micro and macro fundamentals: supply/demand, market structures, GDP, monetary and fiscal policy.

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