Cash Was Paid by XYZ to Creditors $\quad$ CR Accounts Payable

B

question 25

Short Answer

Cash was paid by XYZ to creditors.Which of the following entries for XYZ correctly records this transaction?
A. DR Cash $\quad$ CR Accounts payable

B. DR Accounts payable $\quad$ CR Cash

C. DR Accounts receivable $\quad$ CR Cash

D. DR Accounts Cash $\quad$ CR Accounts receivable

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Definitions:

Products

are goods or services that are created through a process and offered in the market to satisfy the needs or desires of consumers.

Profit

The financial gain obtained when revenues exceed the costs associated with business operations or investments.

Heart

That which is vital; the center or core of a person or thing. Expressing one’s innermost thoughts and feelings is termed “speaking from the heart,” and it is the basis of credibility and trust.

Emotional Intelligence

The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.