Question

Connie made a purchase on account of printer paper to last for about three months; this transaction increased supplies and decrease accounts payable.

a. True
b. False

Answer 1

The answer is False. While supplies does increase, accounts payable will also increase (assuming the printer paper was purchased on credit instead of payed for in cash). Because of this purchase, Connie now owes someone for the printer paper, causing the increase to accounts payable. When she finally pays for it, accounts payable will be decreased.