when employee expenditures with company - issued credit cards are recorded\nmultiple choice\nretained…
when employee expenditures with company - issued credit cards are recorded\nmultiple choice\nretained earnings is debited.\naccounts payable is credited.\ncash is debited.\nexpenses are credited.
Answer
Brief Explanations:
When an employee makes an expenditure using a company - issued credit card, the company has an obligation to pay the credit - card issuer. Accounts Payable is credited to record this liability. Expenses are debited to recognize the cost incurred by the company. Retained Earnings is not directly affected by day - to - day employee credit - card expenditures. Cash is not debited as no cash is immediately going out at the time of recording the expenditure.
Answer:
B. Accounts Payable is credited.