A Check Drawn by a Company for $340 in Payment

question 158

Multiple Choice

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. What entry is required in the company's accounts?

• A) debit Accounts Payable; credit Cash
• B) debit Cash; credit Accounts Receivable
• C) debit Cash; credit Accounts Payable
• D) debit Accounts Receivable; credit Cash

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Definitions:

Static Budget

A type of budget that remains unchanged over a period, regardless of any changes in business activity or operations.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity, allowing for better cost control and planning.

Direct Labor

Direct Labor refers to the wages and benefits for employees directly involved in the production of goods, easily traceable to specific products or services.

Variable Electric Power

Electricity supply or rate that can fluctuate based on demand or time of use, often tied to renewable energy sources.