The General Journal Entry to Record a Payment to a Creditor

question 113

Multiple Choice

The general journal entry to record a payment to a creditor would most commonly include:

• A) a debit to Accounts Payable and a credit to Cash.
• B) a debit to Capital and a credit to Cash.
• C) a debit to Supplies and a credit to Cash.
• D) a debit to Cash and a credit to Accounts Payable.

Analyze the impact of variances on financial statements.

Record purchases and usage of raw materials.

Record direct labor costs and understand their impact on product costs.

Understand the treatment and impact of variances at year-end, including closing variances to Cost of Goods Sold.