Which transaction shows payment by check for advertising?

Which transaction shows payment by check for advertising?

• A. July 4 advertising
• B. July 7 equipment rental
• C. July 24 subcontractor
• D. July 17 bicycle

Answer: (A)

The key idea is matching both the purpose of the transaction and the payment method. An entry that shows advertising as the expense and is paid by check fits the description of “payment by check for advertising.” Among the options, the one dated July 4 is the advertising entry, so it’s the correct match. The other entries involve equipment rental, a subcontractor, or a bicycle and do not reflect advertising, so they don’t fit the prompt. If you record it, you’d typically debit Advertising Expense and credit Cash/Bank to reflect the check payment.

The key idea is matching both the purpose of the transaction and the payment method. An entry that shows advertising as the expense and is paid by check fits the description of “payment by check for advertising.” Among the options, the one dated July 4 is the advertising entry, so it’s the correct match. The other entries involve equipment rental, a subcontractor, or a bicycle and do not reflect advertising, so they don’t fit the prompt. If you record it, you’d typically debit Advertising Expense and credit Cash/Bank to reflect the check payment.