The Entry to Record Tom's Payment of a Home Telephone

question 86

Multiple Choice

The entry to record Tom's payment of a home telephone bill is:

• A) debit Accounts Payable; credit Telephone Expense.
• B) debit Tom, Withdrawals; credit Cash.
• C) debit Telephone Expense; credit Cash.
• D) debit Tom, Withdrawals; credit Accounts Payable.

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Definitions:

Financial Defenses

Strategies and measures implemented by individuals, companies, or countries to protect financial assets and income against risks and volatility.

Short-Term Profitability

The ability of a company to generate profits over a brief period, typically less than one year.

Interlocking Directorates

Interlocking directorates occur when members of the board of directors for one company serve on the boards of directors for other companies, potentially leading to conflicts of interest and reduced competition.

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at increasing competition by prohibiting certain actions that lead to anti-competitiveness.