Accounting Quizzes Financial Accounting Quiz MCQs

Question:
Buck O'Nere receives a bill (invoice) for use of his mobile phone. The correct entry for recording the liability of the bill is:

Option A):
Debit the telephone account and credit the bank account.
Option B):
Credit an asset account and debit a liabilities account.
Option C):
Debit the telephone account and credit an accounts payable account.
Option D):
Credit the purchases account and debit a loan account.

Correct Answer is Option C):
Debit the telephone account and credit an accounts payable account.