Asked by Shehroze Tariq on May 21, 2024
Verified
Cash is credited when the business makes a payment for supplies.
Cash
Money in the form of currency, which includes bills and coins, used as a medium of exchange.
Supplies
Items that are consumed during the operation of a business, such as office supplies, which are essential for day-to-day activities but not directly tied to the product being sold.
- Understand how transactions impact account balances.
Verified Answer
SC
Sahil ChawlaMay 24, 2024
Final Answer :
True
Explanation :
When a business makes a payment for supplies, it is reducing its cash balance, which is recorded by crediting the cash account in accounting.
Learning Objectives
- Understand how transactions impact account balances.