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:

Cash Discount

A reduction in invoice amount by a seller as an incentive for early payment by the buyer.

Net 30

A payment term that indicates the full payment is due 30 days from the invoice date.

Wholesalers

Businesses that buy goods in bulk from manufacturers to resell them, typically to retailers, in smaller quantities.

Retail List Price

The price at which a product is sold to the public, suggested by the retailer.