Question

Which of the following events would result in an increase in accounts payable on x company's balance sheet? (check all that apply.)

(A) x company ordered $5,000 of supplies to be delivered and paid for in the future
(B) x company paid $5,000 owed for chairs previously purchased
(C) x company purchased $5,000 of chairs on credit
(D) x company purchased $5,000 of supplies on account
(E) x company paid $5,000 for supplies purchased

Answer 1

An increase in accounts payable for X Company would occur when it orders supplies to be paid in the future (A), purchases chairs on credit (C), or purchases supplies on account (D). Paying off debts (B and E) would decrease accounts payable.

Step-by-step explanation:

Which of the following events would result in an increase in accounts payable on X Company's balance sheet? Accounts payable represent amounts that a company owes to suppliers or service providers for goods and services received that have not yet been paid for. In this case, the events that will cause an increase in accounts payable are:

(A) X Company ordered $5,000 of supplies to be delivered and paid for in the future

(C) X Company purchased $5,000 of chairs on credit

(D) X Company purchased $5,000 of supplies on account

Events (B) and (E), where X Company paid $5,000 owed for chairs previously purchased and paid $5,000 for supplies purchased, respectively, would actually decrease accounts payable as payments are settled.