Question

Your company has paid for a motivational speaker to talk to your employees. How would this be recorded as a journal enrty in the accounting cycle?

not recorded since it's not a business exspense
recorded as a debit
recorded as a credit
recorded as a balance

Answer 1

In accounting, expenses related to employee motivation, such as paying for a motivational speaker, are typically recorded as business expenses. This would involve debiting an expense account and crediting cash or accounts payable, depending on whether the payment was made immediately or on credit.

In this case, the most accurate option from your list is:

**recorded as a debit.**

Here is how the journal entry would look:

1. Debit (increase) the appropriate expense account (e.g., "Employee Training Expense" or "Motivational Speaker Expense").
2. Credit (decrease) the cash account or the accounts payable account (if not paid immediately).

The full journal entry might look like this:

```
Date Account Debit Credit
-------------------------------------------------------------------------------
YYYY-MM-DD Employee Training Expense XXX
Cash/Accounts Payable XXX
```

This means you'll recognize it as a legitimate business expense, reflecting the cost of the speaker.