A Business Makes a Cash Payment to a Supplier on Account

question 92

Multiple Choice

A business makes a cash payment to a supplier on account (for Office Supplies which were purchased earlier.) Which of the following accounts will be credited?

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

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Definitions:

Creditor's Promise

A declaration made by a creditor, indicating their intention to extend credit to a debtor under agreed terms.

Tender

The formal process of submitting a proposal or bid to undertake a contract or supply goods or services.

Consideration

Something of value that is exchanged between parties as part of a contract, making the agreement legally binding.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.