A Business Makes a Cash Payment to a Supplier for Office

question 32

Multiple Choice

A business makes a cash payment to a supplier for office supplies that were purchased earlier on account.Which of the following accounts is debited?

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

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Definitions:

Breach

The violation or non-fulfillment of a legal obligation, agreement, or duty.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed by the party or parties to be charged, in order to be legally enforceable.

Oral Contract

An agreement between parties that is spoken rather than written but is still legally binding.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no formal contract exists between the parties.