Question

Select all that apply When supplies are purchased on credit it means that: (Check all that apply.) Multiple select question. the business will pay for the supplies at a later time. a liability has been incurred. the business will pay for the supplies immediately. the Accounts Payable account will be increased.

Answer 1

Answer:

the business will pay for the supplies at a later time

a liability has been incurred.

the Accounts Payable account will be increased.

Explanation:

In the case when the supplies are purchased on credit, the following entry should be passed

Supplies Dr XXXX

     To Account payable XXXX

(Being supplies purchased on credit is recorded)

here supplies is debited as it increased the asset and credited the account payable as it also increased the liabilities

So the following options should be chosen

1. The business would pay at a later time

2. Liability is incurred

2. The account payable is increased