In the Excel,or spreadsheet,approach to recording financial transactions,cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.

Question

Quizplus · Accepted Answer

In the Excel, or spreadsheet, approach to recording financial transactions, cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Accounts Payable column (not Retained Earnings). Retained Earnings is a component of the equity section of the balance sheet and is not directly affected by cash transactions.

In the Excel,or Spreadsheet,approach to Recording Financial Transactions,cash Paid to Creditors