Question

All else equal, when a firm purchases raw materials on credit from its supplier, which of the following accounts is affected? a. Cash b. Accruals c. Notes payable d. Accounts receivable e. Accounts payable

Answer 1

Option C

Accounts payable accounts is affected

Explanation:

When a firm buying goods on credit that wants to be settled after in a short-term period, it is recognized as Accounts Payable. It is employed as a contract and proceeds following the head ‘current liabilities’. Accounts Payable is a short-term mortgage payment that requires to be met to evade default.

The total of all notable amounts owed to merchants is bestowed as the accounts payable surplus on the company's balance sheet.  Accounts Payable as a title is not confined to corporations.