Asked by Anh Thy Nguy?n Ng?c on May 09, 2024
Verified
The total on the "Accounts Payable Creditor Balances" report at January 31, the end of the first month of operations, agrees with the total of the Accounts Payable Dr. column in the cash payments journal for the same period.
Creditor Balances
The amounts owed by a business to its creditors, representing liabilities for goods, services, or loans provided to the business.
Cash Payments Journal
An accounting ledger that tracks all cash outflows or payments made by a business.
- Comprehend the function of subsidiary ledgers and control accounts within the accounting cycle.
- Identify the distinctions among diverse transaction types and the suitable entries in journals.
Verified Answer
AP
Allison PerezMay 16, 2024
Final Answer :
False
Explanation :
The "Accounts Payable Creditor Balances" report reflects the total amount owed to suppliers at a point in time, while the Accounts Payable Dr. column in the cash payments journal records the cash payments made to suppliers during a period, not the total amount owed.
Learning Objectives
- Comprehend the function of subsidiary ledgers and control accounts within the accounting cycle.
- Identify the distinctions among diverse transaction types and the suitable entries in journals.
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