You purchase office supplies with cash. Which account would be debited?

Study for the Bookkeeping Basics Test. Use flashcards and multiple choice questions that include hints and explanations. Get ready for your exam!

Multiple Choice

You purchase office supplies with cash. Which account would be debited?

Explanation:
When you buy office supplies with cash, you’re increasing the supplies asset and decreasing cash. Debits increase assets, so the office supplies account is debited to record the new supplies. Cash is credited to reflect the outflow of cash. Accounts payable would come into play only if you purchased on credit, and revenue isn’t affected by buying supplies.

When you buy office supplies with cash, you’re increasing the supplies asset and decreasing cash. Debits increase assets, so the office supplies account is debited to record the new supplies. Cash is credited to reflect the outflow of cash. Accounts payable would come into play only if you purchased on credit, and revenue isn’t affected by buying supplies.

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