A Business Purchases Supplies on Account

question 70

Multiple Choice

A business purchases supplies on account. The entry to record this transaction is:

• A)Debit to Supplies; Credit Accounts Receivable
• B)Debit Supplies; Credit Accounts Payable
• C)Debit Supplies; Credit to Cash
• D)Debit to Cash; Credit Supplies

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Definitions:

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law, offering services such as legal advice and representation.

Advertising Costs

Expenses associated with promoting products services, including media space rentals, production costs, and agency fees.

Product Costs

The total costs associated with manufacturing a product, including direct labor, direct materials, and manufacturing overhead.

Opportunity Costs

The advantages forgone by selecting one option instead of another.