A Journal Entry to Record a Payment on Account Will

question 21

Multiple Choice

A journal entry to record a payment on account will include a

• A)debit to accounts receivable.
• B)credit to accounts receivable.
• C)debit to accounts payable.
• D)credit to accounts payable.

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Definitions:

Bonds Retired

The act of paying off or buying back issued bonds before their maturity date.

Machinery

Industrial or commercial devices or equipment designed to perform specific tasks, often contributing to the production of goods.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or the operating cycle, whichever is longer.