Answered: s liabilities incurred prior year, what…

Business

Accounting

s liabilities incurred prior year, what is the proper debit

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section21.1: Accruals

Problem 2AYU

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Question

Assuming the entity paid its liabilities incurred prior year, what is the proper debit for this transaction?

a.) Accounts Receivable

b.) Supplies Expense

c.) Cash

d.) Accounts Payable

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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