Ben's Beverages Bought Postage Stamps Using $15 of Petty Cash

question 88

Multiple Choice

Ben's Beverages bought postage stamps using $15 of petty cash on July 9. The entry on July 9 would include a debit to

• A) Postage Expense and a credit to Cash.
• B) Postage Expense and a credit to Petty Cash.
• C) Petty Cash and a credit to Cash.
• D) no account; there is no entry on July 9.

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Definitions:

Operating Activities

Activities that relate to the primary operations of a company, such as selling products or services and administrative expenses.

Taxes

Compulsory charges imposed by governments on individuals or entities to fund public services and infrastructure.

Investing Activity

Transactions involving the purchase and sale of long-term assets and investments, part of a company's cash flow statement that indicates how funds are used and generated.

Corporation

Business organization that is both a legal and accounting entity.