One Asset Would Be Debited and Another Credited If

question 43

Multiple Choice

One asset would be debited and another credited if:

• A) the business provided services to a cash customer.
• B) the business paid a creditor.
• C) the business bought supplies paying cash.
• D) the business provided services to a credit customer.

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Definitions:

Single-Column Purchases Journal

An accounting journal used to record all purchase transactions of a business in a single column, typically for the purchase of inventory on credit.

Cash Payments Journal

A business ledger that documents every payment or cash disbursement made by a company.

General Journal

An accounting journal where all types of transactions are initially recorded, before being posted to specific accounts in the ledger.

Accounting System

A systematic process used by entities to track financial transactions and summarize financial data.