A Check Drawn by a Company in Payment of a Voucher

question 48

Multiple Choice

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts?

• A) debit Accounts Payable; credit Cash
• B) debit Cash; credit Accounts Receivable
• C) debit Cash; credit Accounts Payable
• D) debit Accounts Receivable; credit Cash

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Definitions:

Benchmarking

Uses external comparisons to gain insights for planning.

Best Practices

Best practices refer to the most efficient and effective methods of operating or performing tasks, identified through experience and research, which serve as benchmarks for businesses or organizations.

Planning Technique

A systematic method or approach used in preparing and executing plans or strategies to achieve desired objectives.

Household Savings

The portion of disposable income not spent on consumption of goods and services, often stored for future use or investment.