In January,a Company Pays for Advertising Space in the Local

question 165

Multiple Choice

In January,a company pays for advertising space in the local paper for ads to be run during the months of January,February,and March at $1,500 a month.The journal entry to record the payment would debit:

• A)Cash for $4,500,credit Advertising Expense for $1,500,and credit Prepaid Advertising for $3,000.
• B)Accounts Payable and credit Cash for $4,500.
• C)Accounts Payable and credit Stockholders' Equity for $4,500.
• D)Advertising Expense for $1,500,debit Prepaid Advertising for $3,000,and credit Cash for $4,500.

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Definitions:

Employee Trust

The confidence employees have in the reliability, integrity, and fairness of their employer and its leaders.

Financial Performance

It denotes the measure of an organization's profitability, revenue, expenses, and overall financial health.

Ethical Culture

Refers to the practices, values, and standards within an organization that guide the ethical behavior of its members.

Ethical Behavior

Ethical behavior pertains to actions that are morally acceptable, demonstrating respect for societal norms and values, and often guided by a sense of fairness and justice.