A Payment That Is Received Would Most Likely Be Recorded

question 8

Multiple Choice

A payment that is received would most likely be recorded directly in that company's:

• A)general ledger.
• B)cash disbursements journal.
• C)cash receipts journal.
• D)trial balance.

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Definitions:

General Journal Entries

Records of financial transactions where each entry is recorded in a double-entry accounting system, impacting at least two accounts.

Terms 2/10, N/30

Terms 2/10, N/30 are payment terms indicating that a buyer can take a 2% discount on the invoice price if the payment is made within 10 days; otherwise, the net amount is due within 30 days.

Merchandise Inventory

Goods that a company holds for sale to customers, considered an asset on the balance sheet.