The Journal Entry to Record a Particular Business Transaction Includes

question 1

Multiple Choice

The journal entry to record a particular business transaction includes a credit to a liability account.This transaction is most likely also to include:

• A)Issuance of new capital stock.
• B)The purchase of an asset on account.
• C)A cash payment.
• D)A credit to Accounts Receivable.

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Definitions:

Federal Income Tax

A tax levied by the United States government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Taxpayers

Individuals or entities that are obligated to pay taxes to government authorities based on earned income, property ownership, or other taxable activities.

Percentage

A proportion or share in relation to a whole, represented as a fraction of 100.

United States

A country located in North America, comprising 50 states, a federal district, and several territories, known for its significant economic and cultural influence globally.