Question

The payment of an account for supplies purchased in the previous month will ______ the cash account.

a)increase
b)decrease
c)have no effect on

Answer 1

The payment of an account for supplies purchased in the previous month will decrease the cash account.

Step-by-step explanation:

The correct answer is b) decrease.

When an account for supplies purchased in the previous month is paid, it will decrease the cash account. This is because cash is being used to make the payment, resulting in a decrease in the amount of cash available.

For example, if a business purchases supplies worth $500 in the previous month and pays the supplier in cash, the cash account will decrease by $500.