The Cash Payments Journal Only Has One Column Because All

question 144

True/False

The cash payments journal only has one column because all entries recorded in this journal require a credit to the Cash account.

---

Definitions:

Acquisition

The process by which one company purchases most or all of another company's shares to gain control.

Debt Capacity

The maximum amount of debt a business or entity can borrow without reaching financial distress.

Diversification Benefits

Advantages obtained from investing in a variety of assets, which helps to reduce risk by spreading exposure across different investments.

Purchase Accounting

An accounting method used to consolidate the financial statements of a acquiring company and the company it has acquired.