Question

When cash is debited, a typical credit is to
A. withdrawals.
B. accounts payable.
C. accounts receivable.
D. expenses.

Answer 1

Answer:

b

Step-by-step explanation:

accounts payable is your answer

Answer 2

Concept

A debit raises the value of an asset or expense account while decreasing the value of a liability, revenue, or equity account. A credit should always appear on the right side of an entry. It raises the liability, revenue, and equity accounts while lowering the asset and expenditure accounts.

Given

When cash is debited, a typical credit is to

A. withdrawals.

B. accounts payable.

C. accounts receivable.

D. expenses.

Find

We are asked to choose the correct option

Solution

• When cash is debited, a typical credit is to accounts payable.
• Money owing by a corporation to its suppliers is indicated as a liability on its balance sheet. It's not to be confused with notes payable liabilities, which are debts incurred as a result of formal legal instrument paperwork.

Hence option (b) account payable is the correct answer.