Multiple choice

Transaction to record payment of delivery equipment that was purchased on account would include

  1. debiting Cash and crediting Accounts Receivable.

  2. debiting Cash and crediting Accounts Payable.

  3. debiting Accounts Payable and crediting Cash.

  4. debiting Delivery Equipment and crediting Cash.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Paying an account payable reduces the liability (debit Accounts Payable) and reduces the asset Cash (credit Cash).