Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 36 - No. 8)
A business buys goods on credit. Which of the following accounts is immediately affected?
Cash and Sales Revenue
Inventory and Accounts Payable
Accounts Receivable and Cash
Owner's Equity and Inventory
Explanation
Purchasing goods on credit increases Inventory (an asset) and Accounts Payable (a liability).
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