Which Entity Is Likely to Be Part of Both the Payroll

question 26

Multiple Choice

Which entity is likely to be part of both the payroll cycle and the revenue cycle?

• A) Cash
• B) Customer
• C) Receive Goods
• D) Inventory

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Definitions:

Transaction Recorded

The act of documenting a business transaction in the company's accounting records.

Debit

A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet, or in the context of personal banking, a withdrawal from an account.

Credit

An accounting entry reflecting an increase in assets or decrease in liabilities on a company's balance sheet or an entry on the right side of an account.

Drawing

In accounting, refers to the withdrawal of cash or goods by the owner from a business for personal use.