At the end of the month, employees have made the following expenditures from the petty...
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Accounting
At the end of the month, employees have made the following expenditures from the petty cash fund and with company-issued credit cards. None of these transactions has been recorded previously. Supplies (petty cash) = $50 Delivery (petty cash) = $75 Advertising (credit card) = $1,100 Equipment (credit card) = $4,200
Accounting for these employee purchases would include a:
A) Credit to Petty Cash for $125.
B) Credit to Accounts Payable for $5,425.
C) Credit to Cash for $1 ,225.
D) Debit to Accounts Payable for $5,300.
Which of the following would not result in an increase in both the current ratio and the acid-test ratio?
A) Increase in accounts receivable
B) Increase in inventory
C) Increase in cash
D) Increase in current investments
T/F At the time of a credit sale, a company would record an increase in assets and an increase in revenues.
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