The following transaction has been recorded in the general journal entry:

Which of the following could be an explanation for this transaction?
A)Provided services on account.
B)Paid cash to settle accounts payable.
C)Collected cash from customers.
D)Borrowed money to support operating activities.

Question

The following transaction has been recorded in the general journal entry:

Which of the following could be an explanation for this transaction?
A)Provided services on account. 
B)Paid cash to settle accounts payable. 
C)Collected cash from customers. 
D)Borrowed money to support operating activities.

Quizplus · Accepted Answer

The journal entry shows a decrease in cash and a decrease in accounts payable,which could be explained by the payment of cash to settle accounts payable.

The Following Transaction Has Been Recorded in the General Journal