Question

Recall the design of the Cash Disbursements Journal we studied. The column dedicated to which of the following general ledger accounts is always used when recording transactions in the Cash Disbursements Journal?

a) Cash account

b) Accounts payable

c) Accounts receivable

d) Inventory

Answer 1

The Cash account column is always used when recording transactions in the Cash Disbursements Journal because it tracks the outflow of cash.

Step-by-step explanation:

The column dedicated to the Cash account is always used when recording transactions in the Cash Disbursements Journal. This is because the primary purpose of a Cash Disbursements Journal is to record all transactions that involve the outflow of cash, such as payments to suppliers, payments of expenses, or any other disbursements. Each entry in this journal will typically decrease the cash balance, therefore it is imperative that it has a dedicated column for the Cash account to track all cash movements accurately.