Multiple choice

Making a payment on account would result in...

  1. A debit to accounts payable

  2. A credit to accounts payable

  3. A debit to cash

  4. A debit to accounts receivable
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Paying on account reduces a liability. Since liabilities have a normal credit balance, a decrease is recorded as a debit.

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