Which account is credited when salary is paid in cash?
Correct answer: D. Cash Account
- A. Salary Account
- B. Drawings Account
- C. Capital Account
- D. Cash Account
Explanation
Salary is an expense and is debited when incurred or paid. Cash decreases because of the payment, so Cash Account is credited.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Ledger Accounts and the Trial Balance
Ledger accounts collect transactions under individual headings and use debit and credit sides to determine balances. The trial balance lists those balances to check arithmetical agreement before financial statements are prepared, but it does not reveal every error, such as complete omission, compensating errors or entries made in the wrong account.
Practise Ledger Accounts and the Trial Balance
34 free Ledger Accounts and the Trial Balance MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Ledger Accounts and the Trial Balance questions
What does the ledger folio column in a journal mainly show?
Which type of account normally records the owner’s capital introduced into a business?
If the debit side of a ledger account exceeds its credit side, where is the balance c/d entered before the account is closed?
Which item is generally excluded from a trial balance prepared from ledger balances?
When the totals of a trial balance do not agree, which account may be opened temporarily to locate the difference?
Under the traditional rules of accounting, which entry is made for an increase in an asset account?