Question

Why would a business choose to enter a bill and then later pay the bill (2 steps) instead of just recording the check or expense when you pay the bill (1 step)? a) Entering a bill allows for better tracking of accounts payable and due dates. b) Entering a bill simplifies the payment process by consolidating multiple expenses. c) Entering a bill reduces the overall number of transactions in the accounting system. d) Entering a bill prevents the need for reconciliation with the bank statement.

Answer 1

Entering a bill and then later paying it in two steps instead of recording the payment in one step offers benefits in terms of better tracking of accounts payable, consolidation of expenses, and reduction of overall transactions.

Step-by-step explanation:

Entering a bill and then later paying the bill in two steps instead of just recording the check or expense when you pay the bill in one step offers several benefits for a business:

1. Better tracking of accounts payable and due dates: Entering a bill allows the business to keep a record of all pending bills, their due dates, and the amount owed. This helps the business stay organized and ensures that bills are paid on time.
2. Consolidation of multiple expenses: Entering a bill lets the business consolidate multiple expenses into one bill. This can make the payment process more efficient and save time.
3. Reduction of overall number of transactions: Entering a bill and then paying it later reduces the number of individual transactions in the accounting system. This can simplify the record-keeping process and make it easier to manage the business's finances.

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