Ralph Pine Consulting Received Its Telephone Bill in the Amount

question 126

Multiple Choice

Ralph Pine Consulting received its telephone bill in the amount of $300,and immediately paid it.Pine's general journal entry to record this transaction will include a

• A)Debit to Telephone Expense for $300.
• B)Credit to Accounts Payable for $300.
• C)Debit to Cash for $300.
• D)Credit to Telephone Expense for $300.
• E)Debit to Accounts Payable for $300.

---

Definitions:

Employers Withhold

The practice of employers deducting a portion of employees' wages or salaries for tax purposes before issuing the net amount to the employee.

Tax Return

The form(s) filed with a taxing authority that reports income, expenses, and other pertinent tax information, used to calculate tax liability.

Tax Liability

The complete sum of tax a person or organization is legally required to pay to a tax-collecting body.

Taxable Income

The amount of income used to determine how much tax an individual or business owes, after deductions and exemptions.