A Bank Reconciliation Included an Outstanding Check of $850 for the Payment

question 65

Multiple Choice

A bank reconciliation included an outstanding check of $850 for the payment of salaries.The journal entry to record this reconciling item:

• A)should debit Salaries Expense and credit Cash for $850.
• B)should debit Cash and credit Salaries Expense for $850.
• C)should debit Accounts Payable and credit Cash for $850.
• D)is not required.

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Definitions:

Operating Lease

A lease agreement allowing the use of an asset but does not convey rights of ownership of the asset.

Relatively Short

The term "relatively short" refers to a period of time that is short in comparison to other relevant timeframes or expectations.

Technological Changes

The overall process of invention, innovation, and diffusion of technology or processes.

Direct Lease

A lease where the lessor purchases the asset and then leases it directly to the lessee, without using a lease intermediary.