Identify the GL Entries That Are Posted When a Payment

question 71

Multiple Choice

Identify the GL entries that are posted when a payment is sent to a vendor.

• A)The vendor account is credited,
• B)The vendor account is debited.
• C)The accounts payable reconciliation account is debited.
• D)The bank account is credited.
• E)The bank account is debited.

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Definitions:

Fair Value Enterprise Method

A valuation method that estimates the value of an entire enterprise as if it were traded in a fair and open market.

Non-Controlling Interest

A share in the equity of a subsidiary not owned by the parent company, also known as minority interest.

Control Premium

An additional amount paid over the fair market value for a controlling interest in a company.

Non-Controlling Interest (NCI)

Equity interest in a subsidiary not attributable to the parent company, reflecting the minority shareholders' stake in the subsidiary's net assets.