Rocky Industries Received Its Telephone Bill in the Amount of $300

question 180

Multiple Choice

Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a

• A) Debit to Telephone Expense for $300.
• B) Credit to Accounts Payable for $300.
• C) Debit to Cash for $300.
• D) Credit to Telephone Expense for $300.
• E) Debit to Accounts Payable for $300.

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Definitions:

Market Value

The current quoted price at which an asset or service can be bought or sold in an open market.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by issuing more shares to current shareholders.

Market Price

The current trade value at which a service or asset can be exchanged.

Shares Outstanding

The complete count of a corporation's shares currently in possession of all shareholders, including those owned by institutional investors and the restricted shares held by the company's executives and insiders.