Which of the Following Accounts Would Be Affected by the Transaction

question 116

Multiple Choice

Which of the following accounts would be affected by the transaction "purchase supplies on credit"?

• A) Office Expense and Accounts Payable
• B) Office Expense and Cash
• C) Supplies and Cash
• D) Supplies and Accounts Payable

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Definitions:

End of the Year

The conclusion of a fiscal or calendar year, marking a period for financial reporting, assessment, and strategy formulation for businesses.

Maturity

The date on which the principal amount of a loan, bond, or other financial instrument must be repaid to creditors.

Maker

In the context of finance, refers to the entity that issues or creates a financial instrument, such as a check or note.

Maturity Value

Maturity value is the amount payable to an investment's holder at its maturity date, including the principal and any remaining interest.