Making payments to a vendor,with whom a credit line is already established,would be initially recorded in which type of accounting record and as part of what transaction cycle?
A)purchases journal;expenditure cycle
B)general journal;expenditure cycle
C)general ledger;expenditure cycle
D)cash disbursements journal;expenditure cycle

Question

Quizplus · Accepted Answer

Making payments to a vendor with an already established credit line is a disbursement transaction, which would be recorded in the cash disbursements journal as part of the expenditure cycle. The purchases journal is used for the purchase of inventory and goods, while the general journal and general ledger are used for more miscellaneous and non-routine transactions.

Making Payments to a Vendor,with Whom a Credit Line Is