Question

A ___________ to A/P represents cash paid to creditors.

Answer 1

Answer:

Credit

Explanation:

Remember that in accountability, a credit is somthing that is owned or added or owed to you, and debits is something that you had to pay, a debt or a spent, so in this case since it is you paying off some loan or to someone that you owed money to then that is a credit in your favor in the A/P so the correct word to complete the sentece would be "Credit".

Answer 2

The normal side of account payable is on the credit side which means the supplies, services, or purchases a company bought is on credit terms. This is used as opposed to cash when you can't pay for the purchase yet. So, a debit to accounts payable means there is a payment made to a supplier or vendor.