Martin Supply Service Paid $350 Cash to a Materials Supplier

question 14

Multiple Choice

Martin Supply Service paid $350 cash to a materials supplier that it owed from the previous month.Which of the following accounts decreases?

• A) Accounts receivable
• B) Accounts payable
• C) Owner's capital
• D) Rent expense

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Definitions:

Obsolete Goods

Items that are no longer useful or saleable due to changes in technology, style, or customer preferences, often leading to inventory write-offs.

Original Cost

The initial cost of acquiring an asset or service, including all expenses related to the purchase.

Internal Control

Processes and procedures implemented by a company to safeguard its assets, enhance the reliability of its accounting records, promote efficient operations, and ensure compliance with laws and regulations.

Physical Count

A physical count involves manually counting the actual inventory to verify accuracy against inventory records, often used for audit purposes or to correct discrepancies.