Which of the Following Entries Records the Investment of Cash

question 192

Multiple Choice

Which of the following entries records the investment of cash by Taylor Thomas, owner of a proprietorship?

• A) debit Taylor Thomas, Capital; credit Accounts Receivable
• B) debit Cash; credit Taylor Thomas, Capital
• C) debit Taylor Thomas, Drawing; credit Cash
• D) debit Cash; credit Taylor Thomas, Drawing

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Definitions:

Comparative Analysis

The process of comparing two or more data sets, periods, or entities to determine their relative performance or characteristics.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a period of time to identify trends and growth patterns.

Financial Analysis

The process of examining financial statements to evaluate a company's performance and make future financial predictions.

Valuation Ratios

Ratios that assess the financial worth or valuation of a company by comparing its current share price to certain per-share financial metrics.