A Business Makes a Cash Payment of $12,000 to a Supplier

question 83

Multiple Choice

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier.Which of the following accounts is debited?

• A) Cash
• B) Accounts Payable
• C) Supplies
• D) Accounts Receivable

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Definitions:

Nonlegal Obligations

Obligations that are not enforceable by law but may be morally or ethically binding.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules, standards, and procedures that companies must follow when compiling their financial statements in the United States.

Unconditional

Unconditional means not subject to any conditions or limitations; absolute.

Non-Cancellable

A contract or agreement that cannot be terminated or cancelled by either party involved.