What Effect Does This Journal Entry Have on the Accounts

question 220

Multiple Choice

What effect does this journal entry have on the accounts?

• A) Decrease accounts payable, increase cash
• B) Increase cash, decrease accounts payable
• C) Increase accounts payable, increase cash
• D) Decrease accounts payable, decrease cash

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Definitions:

Communication Technologies

Refers to tools and platforms used for facilitating communication, including the internet, mobile devices, social media, and email.

Reflective Listening

A communication method in which the listener restates what has been said in order to confirm understanding of both the content and the feelings expressed.

Limited Partnership

A business structure where one or more general partners manage the business and are personally responsible for its debts, and one or more limited partners contribute capital but have limited liability.

Double Taxed

The situation where the same income is taxed twice, typically referring to corporate income taxed at both the corporate level and again when distributed as dividends to shareholders.