The One Characteristic That All Entries Recorded in a Cash

question 142

Multiple Choice

The one characteristic that all entries recorded in a cash payments journal have in common is

• A) that they all represent purchases of merchandise.
• B) a credit to the cash account.
• C) that they are all posted to the accounts payable subsidiary ledger.
• D) a debit to the accounts payable or purchases accounts.

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Definitions:

Supplies Account

An account that tracks the cost of supplies not yet used by a business.

Adjusting Entry

An accounting entry made into a ledger after the end of the accounting period to allocate income and expenditure to the period in which they actually occurred.

Prepaid Rent

An expense that is paid in advance and recorded as an asset on the balance sheet until it is realized as an expense over time.

Rent Expense

The cost incurred from leasing a property or equipment for business operations, typically recognized in the income statement.