Asked by Isaac Matsie on Jun 07, 2024
Verified
The one characteristic that all entries recorded in a cash payments journal have in common is
A) that they all represent purchases of merchandise.
B) a credit to the cash account.
C) that they are all posted to the accounts payable subsidiary ledger.
D) a debit to the accounts payable or purchases accounts.
Cash Payments Journal
A financial journal that records all cash outflows or payments made by a business, including expenses, debt payments, and purchases.
Credit To Cash
A transaction in accounting where a credit sale is paid off, converting receivables into cash.
Accounts Payable
Liabilities of a business that represent money owed to suppliers or creditors for goods and services received.
- Understand the steps and relevance of entering transactions in accounting records.
Verified Answer
DA
Danika AlbertJun 13, 2024
Final Answer :
B
Explanation :
All entries in a cash payments journal involve a reduction in cash, which is recorded as a credit to the cash account. This is the common characteristic among all entries in this type of journal.
Learning Objectives
- Understand the steps and relevance of entering transactions in accounting records.