Asked by Karren Shaalini Gunalan on Apr 28, 2024
Verified
In the Excel, or spreadsheet, approach to recording financial transactions, cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.
Retained Earnings
The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.
- Comprehend the fundamental principles for documenting financial transactions in a spreadsheet pertinent to job-order costing systems.
- Master the recording process of cash transactions in job-order costing, involving creditor settlements, payments for labor, and utility expenditures.
Verified Answer
KK
Kevin KeeganMay 04, 2024
Final Answer :
False
Explanation :
Cash paid to creditors would be recorded as a decrease in the Cash column and a decrease in the Accounts Payable column, not the Retained Earnings column.
Learning Objectives
- Comprehend the fundamental principles for documenting financial transactions in a spreadsheet pertinent to job-order costing systems.
- Master the recording process of cash transactions in job-order costing, involving creditor settlements, payments for labor, and utility expenditures.
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