Which two accounts are affected when a business buys supplies on account?O Supplies and Accounts PayableAccounts Payable and CashO Cash and SuppliesAccounts Receivable and Supplies

Answered: Which two accounts are affected when a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which two accounts are affected when a business buys supplies on account?
O Supplies and Accounts Payable
Accounts Payable and Cash
O Cash and Supplies
Accounts Receivable and Supplies

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Double entry Accounting is a method of recording transactions in Business and Book Keeping. According to Double Entry Accounting, every business transaction entered by a company have affects on least two accounts in books. This accounting system is known as a double entry system and here the amounts entered as debits in a transactions must be equal to the amounts recorded as credits amount.

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