A Business Pays a Creditor on Account

question 80

Multiple Choice

A business pays a creditor on account. The entry to record this transaction is:

• A)Debit Cash; Credit Accounts Payable
• B)Debit Accounts Receivable; Credit to Cash
• C)Debit Accounts Receivable; Credit Accounts Payable
• D)Debit Accounts Payable; Credit Cash

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Definitions:

Public Relations

The nonpersonal communication of information that is not paid for by an individual or organization.

Royal Family

The immediate family of a king or queen, including spouses, children, and sometimes extended relatives, who typically hold ceremonial, social, or political roles.

Suggestive Proposition

A proposition that implies that the prospect should act now.

Textbook Salesperson

A sales professional who strictly follows the conventional rules and strategies of selling as outlined in sales literature or training.