Multiple choice

A customer buying on account would result in...

  1. Debit to Accounts Payable

  2. Debit to Accounts Receivable

  3. Debit to Cash

  4. Debit to Service Revenue

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

When a customer buys on account, the business gains an asset called Accounts Receivable. Increases in assets are recorded as debits.