Given the Following Accounts

question 93

Multiple Choice

Given the following accounts:
-Paid voucher #424.
Debit ________ Credit ________

• A)Cash in bank
• B)Petty cash
• C)Supplies
• D)Equipment
• E)Notes payable
• F)Vouchers payable
• G)FICA payable
• H)Wages payable
• I)Purchases
• J)Purchase discounts
• K)Discounts lost
• L)Repairs expense
• M)Interest expense
• N)Delivery expense
• Indicate the account(s) to be debited and credited to record the following transactions.
• The company uses the periodic inventory method.

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Definitions:

Gross Margin Ratio

A financial metric indicating the percentage of sales revenue remaining after deducting the cost of goods sold, serving as a measure of a company's production efficiency and pricing strategy.

Operating Activity

Activities that constitute the primary or core business functions, including sales and service provision, and their related expenses, generating most of the company's cash flows.

Cash Flows

Cash flows refer to the movement of money into and out of a business, indicative of its liquidity, operational efficiency, and financial health.

Cash Receipts

Cash receipts refer to the collection of money, including checks, cash, and credit card charges, received by a business for goods or services it has sold.