Question

in accounting, which of the following payment types is journalized as if it were a cash transaction?
eft
debit card
check
all of the above
question 14
3 pts
choose the answer.
how would you journalize a transaction in which you paid on account with an electronic funds transfer?
debit cash and credit accounts payable
debit eft and credit accounts receivable
debit accounts payable and credit cash
debit accounts payable and credit eft

Explanation:

• For the first question:
• In accounting, Electronic Funds Transfer (EFT), debit card, and check are all forms of payment that are journalized as if they were cash transactions. EFT is an electronic transfer of money from one account to another. A debit card directly deducts money from the card - holder's bank account (similar to cash in terms of immediate payment). A check is a written order to a bank to pay a specific amount of money (and is treated like cash for journalizing purposes in many cases).
• For the second question:
• When you pay on account (which means you are reducing your accounts payable) with an electronic funds transfer (EFT), the accounts payable (a liability) is decreased (debited) and cash (or the cash - equivalent EFT, which is treated like cash for journalizing) is decreased (credited).

Answer:

• First question: D. all of the above
• Second question: debit Accounts Payable and credit Cash (assuming EFT is treated as cash for journalizing, if we consider the general cash - like treatment in journal entries. If we strictly follow the options given and assume EFT is just a medium, the most appropriate is still based on the cash - like journalizing concept where we reduce accounts payable (debit) and reduce the cash - equivalent (credit). But if we consider the options as they are, the answer is debit Accounts Payable and credit Cash as EFT is journalized like a cash transaction)