Question

Which of the following statements is false when mama june pizza company paid $47,000 cash on accounts owed to suppliers?

a) accounts payable was debited for $47,000.
b) income from operations was not changed by the payment to the suppliers.
c) the cash account was credited for $47,000.
d) supplies expense was increased by $47,000.

Answer 1

The false statement is that supplies expense was increased by $47,000 when Mama June Pizza Company paid cash on accounts owed to suppliers.

Step-by-step explanation:

The false statement when Mama June Pizza Company paid $47,000 cash on accounts owed to suppliers is option d) Supplies expense was increased by $47,000.

When Mama June Pizza Company pays cash on accounts owed to suppliers, the accounts payable is debited for $47,000, representing a decrease in the amount owed to suppliers. The cash account is credited for $47,000 since cash is being paid out. However, the supplies expense is not affected by this transaction.

The supplies expense would only increase if the company purchased new supplies or used existing supplies.