A Check Drawn by a Company for $340 in Payment

question 158

Multiple Choice

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. What entry is required in the company's accounts?

• A) debit Accounts Payable; credit Cash
• B) debit Cash; credit Accounts Receivable
• C) debit Cash; credit Accounts Payable
• D) debit Accounts Receivable; credit Cash

---

Definitions:

ADP

Adenosine diphosphate, a molecule involved in energy transfer within cells.

Fermentation

A metabolic process that converts sugar to acids, gases, or alcohol in the absence of oxygen.

Gravity

A natural phenomenon by which all things with mass or energy are brought toward one another, including objects ranging from subatomic particles to planets and stars.

Energy

The capacity to do work or produce change, present in many forms such as kinetic, thermal, electrical, and chemical.