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A Check Drawn by a Company for $360 in Payment

Question 48

Multiple Choice

A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630. Identify the effects of the transaction in the company's accounts.


A) Decrease Accounts Payable; Decrease Cash
B) Increase Cash; decrease Accounts Receivable
C) Increase Cash; increase Accounts Payable
D) Increase Accounts Receivable; Decrease Cash

Correct Answer:

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