The Entry to Record Payment of a Voucher for an Invoice

question 97

Multiple Choice

The entry to record payment of a voucher for an invoice within the discount period under the gross method will include:

• A) a debit to Purchase Discounts.
• B) a credit to Purchase Discounts.
• C) a debit to Cash.
• D) Both B and C would be in the entry.

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Definitions:

Closed Systems

A concept in organizational theory referring to organizations that do not interact with their environment, assuming all resources and activities are internal.

Organizations

Entities or groups of people structured to pursue collective goals while being identified as a separate entity from its members.

Environment

The surroundings or conditions in which a person, plant, or animal lives or operates, including natural, social, and built factors.

Open System

A theory in organizational and business studies that suggests organizations are entities that interact with their environment to exchange information, energy, or resources.