Question

Bob purchased a new computer for the company on account. The transaction will

A. increase Computer and increase Capital.
B. decrease Cash and increase Accounts Payable.
C. decrease Cash and increase Computer.
D. increase Computer and increase Accounts Payable.

Answer 1

The transaction will "D. increase Computer and increase Accounts Payable," since another computer is being added to the company and the bill for it will be sent to "accounts payable" as a company expense.