Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 14 - No. 40)

If a company receives a cash discount from a supplier, which accounts are affected?
Accounts Payable and Purchases
Cash and Purchases
Cash and Accounts Payable
Cash, Purchases and Accounts Payable

Explanation

Cash decreases because the business pays less and Accounts Payable will decrease.

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