Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | c | r | r | } \hline \text { Cash } & 750 & \\\hline \text { Accounts Payable } & & 750 \\\hline\end{array}$$

question 57

Multiple Choice

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 750 & \\
• \hline \text { Accounts Payable } & & 750 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 750 & \\
• \hline \text { Cash } & & 750 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 750 & \\
• \hline \text { Office Supplies } & & 750 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 750 & \\
• \hline \text { Office Supplies } & & 750 \\
• \hline
• \end{array}\]

Analyze the impact of rewards on motivation and behavior.

Understand the importance and components of credit evaluation, including the five Cs of credit.

Identify and describe the sequences involved in collecting account receivables.

Comprehend the impact of a firm's operating cash flow on its creditworthiness.

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Definitions:

Quantity Theory of Money

An economic theory which proposes that the amount of money in an economy is directly proportional to the level of economic activity.

Sophisticated Version

An advanced or complex form of something, often referring to technology, systems, or methodologies.

Rational Expectationists

Economic theorists who believe individuals make predictions based on available information and in a way that errors cancel out over time.

Recessionary Gaps

A situation in macroeconomics where the real GDP is lower than the potential GDP, indicating underutilized resources and less-than-full employment in the economy.