The Journal Entry to Record the Conversion of an $550

question 131

Multiple Choice

The journal entry to record the conversion of an $550 accounts payable to a notes payable would be:

• A) Cash 550 Notes Payable 550
• B) Notes Receivable 550 Notes Payable 550
• C) Notes Payable 550 Cash 550
• D) Accounts Payable 550 Notes Payable 550

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Definitions:

Profound Effect

A significant or deep impact that greatly influences or changes an individual, society, or situation.

Status Inconsistency

A situation where an individual’s social positions have both high and low ranks; for example, being high in educational attainment but low in income.

Social Mobility

The ability or movement of individuals or groups to move within or between social strata in a society.

Trend

A general direction in which something is developing or changing; in sociology, it may refer to patterns of behavior, fashion, or opinions among a particular group or society.