What Business Event Is Represented by a Journal Entry That

question 14

Multiple Choice

What business event is represented by a journal entry that shows a debit to supplies of $9,000 and a credit to cash of $9,000?

• A) The company incurred supplies expense.
• B) The company purchased supplies with cash.
• C) The company used supplies.
• D) The company purchased supplies on account.

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Definitions:

Sale

The passing of title from a seller to a buyer for a price.

Real Property

Land and anything permanently attached to it, such as buildings and trees, considered a form of real estate.

Attachment Process

A legal procedure used by a creditor to seize the property of a debtor in order to satisfy a judgment.

Creditor

An individual or organization that lends money or extends credit to another party, expecting repayment in the future.