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:

Chart Of Accounts

An organized list of all accounts in the general ledger of a company, categorizing assets, liabilities, equity, revenues, and expenses.

Numbering System

An organized scheme for assigning unique identifiers to entities within a specific context or system.

Cash Account

A financial account that tracks the flow of cash transactions, including both receipts and disbursements.

Cash Receipts

The collection of money (cash, checks, wire transfers) by a business from its customers.