Answered: f we pay our suppliers for supplies…

f we pay our suppliers for supplies that we had previously purchased, we will need to ____ Accounts Payable. a.Debit b. Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Measuring Your Credit Capacity

Credit capacity means determining one’s ability to manage credit. The credit capacity of the individual or an organization is measured based on the details of the earnings, expenses, and previous debts. Credit capacity valuation is crucially required in obtaining huge debt obligations from a lender such as housing loans, car loans, and business loans.

Question

If we pay our suppliers for supplies that we had previously purchased, we will need to ____ Accounts Payable.

a.Debit

b. Credit

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