Which of the Following Entries Records the Payment of an Account

question 222

Multiple Choice

Which of the following entries records the payment of an account payable?

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

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Definitions:

Government Purchases

Expenditures by the government for goods and services that directly satisfy public consumption or are invested in public infrastructure.

Taxes

Taxes are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Fiscal Policy

Government adjustments in spending levels and tax rates to monitor and influence a nation's economy.

Interest Rates

The percentage charged by lenders for borrowing money or paid by banks to depositors, influencing economic activity.