If a Journal Entry Debits Accounts Payable and Credits Cash

question 89

Multiple Choice

If a journal entry debits Accounts Payable and credits Cash, it can be determined that:

• A) cash will have a credit balance.
• B) accounts payable increased.
• C) cash was increased.
• D) accounts payable decreased.

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Definitions:

Bank Statement

A monthly summary from a bank showing all transactions in an account.

Electronic Funds Transfer

The electronic transfer of money from one bank account to another, either within the same financial institution or across different institutions.

Net Sales

The sum of sales income left over after subtracting returns, compensations for damaged or missing items, and price reductions.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, often considered as an asset on the balance sheet.