Making a Cash Payment to Settle a Debt Would Include

question 70

Multiple Choice

Making a cash payment to settle a debt would include a:

• A) debit to Cash and a credit to Accounts Receivable
• B) debit to Accounts Payable and a credit to Cash
• C) debit to Accounts Payable and a credit to Accounts Receivable
• D) debit to Accounts Receivable and a credit to Cash

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Definitions:

Accounts Payable

Money owed by a company to its creditors for products or services that have been delivered or used but not yet paid for.

NAICS

The North American Industry Classification System, which is used to categorize businesses and industries for statistical purposes in the United States, Canada, and Mexico.

Governmental ID System

Systems implemented by governments to issue identification to its citizens, often used for verification purposes and accessing government services.

NASDAQ 100

An index comprising 100 of the largest non-financial companies listed on the NASDAQ stock market, based on market capitalization.