[amp_mcq option1=”Contra” option2=”Payment” option3=”Receipt” option4=”Journal” correct=”option4″]<\/p>\n
The correct answer is D. Journal.<\/p>\n
A journal is a book of original entry in which all financial transactions are recorded in chronological order. It is the first step in the double-entry bookkeeping process.<\/p>\n
Interest received, commission received, and rent received are all income items. Income items are recorded in the journal as a debit to the income account and a credit to the cash account.<\/p>\n
The other options are incorrect.<\/p>\n
A contra account is an account that is used to offset the balance of another account. For example, the allowance for doubtful accounts is a contra account that is used to offset the balance of the accounts receivable account.<\/p>\n
A payment is a transaction in which money is paid out. Payments are recorded in the journal as a debit to the cash account and a credit to the appropriate expense account.<\/p>\n
A receipt is a document that is issued to acknowledge the receipt of money. Receipts are not recorded in the journal.<\/p>\n","protected":false},"excerpt":{"rendered":"
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