Indicate the Appropriate Columns in Which the Following Transaction Would $\begin{array} { l l } \text { Accounts Payable } & \text { DR } \\\text { Cash } & \text { CR }\end{array}$

question 85

Multiple Choice

Indicate the appropriate columns in which the following transaction would be recorded in the cash payment journal: Paid rent for the month of January.

• A)
• \(\begin{array} { l l }
• \text { Accounts Payable } & \text { DR } \\
• \text { Cash } & \text { CR }
• \end{array}\)
• B)
• \(\begin{array} { l l }
• \text { Other Accounts } & \text { DR } \\
• \text { Cash } & \mathrm { CR }
• \end{array}\)
• C)
• \(\begin{array} { l r }
• \text { Cash } & \text { DR } \\
• \text { Other Accounts } & \text { CR }
• \end{array}\)
• D)
• \(\text { Cash } \quad \text { DR }\)
• \(\text { Accounts Payable } \quad \mathrm{CR}\)

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Definitions:

Casualty Deduction

A tax deduction for losses incurred from the sudden, unexpected, or unusual destruction of property.

Personal Casualty Losses

Financial losses resulting from the damage, destruction, or loss of personal property from events like natural disasters, theft, or accidents, which may be deductible under certain conditions.

Termite Damage

Damage caused to structures (like homes) by termites, often leading to costly repairs and impacting property value.

Qualified Residence Interest

Interest paid on a loan secured by the taxpayer's principal or secondary residence that can be deducted from taxable income under certain conditions.