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

Question

(1 point)
Responses

not recorded since it’s not a business expense

not recorded since it’s not a business expense

recorded as a debit

recorded as a debit

recorded as a credit

recorded as a credit

recorded as a balance

Answer 1

The correct response would be:

recorded as a debit.

When your company pays for a motivational speaker, it is considered a business expense. This would typically be recorded as a debit to an expense account (like "Training Expense" or "Professional Fees") and a credit to cash or accounts payable, depending on how the payment was made. So the journal entry would look something like this:

• Debit: Training Expense (or relevant expense account)
• Credit: Cash (if paid immediately) or Accounts Payable (if it's to be paid later)