Question

In case of credit transaction, it definitely affects the account of____. (A) goods (B) person (C) asset (D) service​

Answer 1

In case of a credit transaction, it definitely affects the account of (C) asset.

Explanation for the answer:

• There are no transactions which are related to the cash at the time of purchase on credit.
• Though, these transactions affect at the time of pay payments.
• The accounts which affect the credit purchase at the time purchasing are an account payable and it's corresponding accounts are expenses and assets accounts.
• Hence, the correct answer among all the options is option (C) asset.

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