BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash and Runner, Capital
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Runner, Capital and Accounts Payable
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Runner, Capital and Accounts Receivable
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Accounts Payable and Cash
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Detailed explanation-1: -Cash sales can be recorded to the company’s books with a journal entry that uses only two accounts, cash and revenue. The entry results in an increase to the revenue account on the company’s income statement, and an increase to the cash balance of the company’s balance sheet.
Detailed explanation-2: -The Objective Evidence accounting concept requires that there be proof that a transaction did occur. he accounts affected when paying cash to the owner for a withdrawal of equity are the Capital Account and Cash.
Detailed explanation-3: -Received cash from owner as an investment, $2, 000.00. Cash and Michael Delgado, Capital are affected. Cash is an asset account.
Detailed explanation-4: -Capital account is the account of a natural person, i.e. an account of person who is alive. Hence, it can be classified as a personal account.