If a Bank Statement Included an EFT Payment of $670

question 138

Multiple Choice

If a bank statement included an EFT payment of $670 for insurance,the journal entry to record this reconciling item would include a:

• A) debit to Cash for $670
• B) debit to Accounts Payable for $670
• C) credit to Cash for $670
• D) credit to Prepaid Insurance for $670

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Definitions:

Activity Cost Pools

Aggregations of all the costs associated with specific activities used in activity-based costing.

Departmental Overhead Rates

Rates calculated to allocate overhead costs to specific departments based on their activities or output.

Machine Hours

A measure of production time used in manufacturing, indicating the total hours a machine is operated.

Oak Paneling

Oak paneling refers to wall or ceiling covering material made from oak wood, prized for its durability, appearance, and texture.