The Account Debited When Supplies Are Purchased on Account Is

question 77

Multiple Choice

The account debited when supplies are purchased on account is:

• A)accounts payable.
• B)cash.
• C)capital.
• D)supplies.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the company.

Dividends

A distribution of a portion of a company's earnings to its shareholders, usually determined by the board of directors.

Operating Activities

Cash flows directly related to the production and delivery of a company's goods and services.

Direct Method

A method of reporting the cash flows from operating activities as the difference between the operating cash receipts and the operating cash payments.