The journal entry to record a particular business transaction includes a credit to the Cash account.This transaction is most likely also to include:
A)Issuance of new capital stock.
B)The purchase of an asset on account.
C)Payment of an outstanding note payable.
D)A credit to Accounts Receivable.

Question

Quizplus · Accepted Answer

When cash is credited, it indicates a decrease in cash. Payment of an outstanding note payable would involve a debit to Notes Payable and a credit to Cash, reflecting the outflow of cash to settle the debt.

The Journal Entry to Record a Particular Business Transaction Includes