The payment of expenses should be recorded with a credit to:

Question

Quizplus · Accepted Answer

The payment of expenses usually involves the use of cash, so it should be recorded with a credit to the Cash account. Option A (Common shares) is not relevant to the payment of expenses. Option C (Dividends) is irrelevant unless the company is paying dividends to shareholders, which is not indicated in the question. Option D (Accounts Receivable) is wrong because this account relates to money owed to the company by its customers, not the payment of expenses.

The Payment of Expenses Should Be Recorded with a Credit