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  1. business
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  3. at the end of the month, employees have made the f

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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