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Salary Expenses of $675 Were Paid in Cash

question 35

Essay

Salary expenses of $675 were paid in cash. The journal entry would include a __________.


Definitions:

Bank Loan

A sum of money lent by a bank to a borrower at a specified interest rate for a fixed period.

Trust Receipt

A document that acknowledges the receipt of goods by a person who is borrowing funds from a lender with the goods as collateral, with an agreement to pay the lender back upon the sale of the goods.

Cash Cycle

Also known as the cash conversion cycle, it measures the time it takes for a company to turn its inventory into cash flows from sales.

Accounts Payable Period

The Accounts Payable Period is the average time it takes for a business to pay off its creditors, indicating the efficiency of its payment process.

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