Question: After paying a bill in the Pay Bills screen, QuickBooks automatically creates a journal entry behind the scenes that will do what?

1. Debit Cash and credit Accounts Payable.
2. Debit Cash and credit Prepaid Expenses.
3. Credit Cash and debit Accounts Payable.
4. Credit Cash and debit Prepaid Expenses.

Answer: The correct answer of the above question is Option D:Credit Cash and debit Prepaid Expenses.