Multiple Choice: Choose only one response for each question. Purchases made on credit are entered in the accounting records as A. accounts receivable. B. accounts payable. C. prepaid expense. D. unearned revenue. E. None of the above 1. 2. When a business purchases a service such as utilities on credit, the two types of accounts affected from the buyer's perspective are A. an asset account and an expense account. B. an asset account and a revenue account. C. a liability account and an expense account. D. a liability account and a revenue account. E. None of the above 3. Which function of Sage 50 is used when a business buys goods or services on credit and must enter the transaction? A. Action Items B. Purchases/Receive Inventory C. Receive Money D. Sales/Invoicing E. None of the above Which accounts payable report contains information about all transactions with vendors and the balances owed to them? A. Vendor List B. Check Register C. Customer Ledgers D. Vendor Ledgers E. None of the above 4. 5. Which general ledger account is credited to record a company's purchases on credit? A. Cash B. Accounts Payable C. Accounts Receivable D. Purchases E. None of the above