Question

An asset would be debited and a liability would be credited if the business
A. bought supplies for cash.

B. incurred an expense and paid it.


D. bought equipment on account.

Answer 1

@jim_thompson5910

Answer 2

where did C go?

Answer 3

C is already wrong... thats why i left it out...sorry

Answer 4

oh gotcha

Answer 5

well if you debit an asset, this means you're gaining more of that asset (or you're decreasing some liability, eg, debt)

I think the only time this happens is when you buy supplies with cash. You aren't using credit or loans, so you don't have to worry about more debt. At the same time, you are gaining more tools to run the business.

However, I'm not 100% sure on this one.