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

question 202

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

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Definitions:

Capital Commitment

The amount of capital a company is obligated to spend over a period, typically for investment in long-term assets or projects.

Operating Activities

Business activities directly related to the production and delivery of goods and services, which generate revenue for a company.

Inventory Policies

Guidelines or strategies used by a company to maintain optimal inventory levels and manage its inventory costs.

Stockholders Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.