Receiving Cash from a Customer on Account Would Include A

question 41

Multiple Choice

Receiving cash from a customer on account would include a:

• A) debit to Cash and a credit to Accounts Payable
• B) debit to Cash and a credit to Accounts Receivable
• C) debit to Accounts Receivable and a credit to Cash
• D) debit to Accounts Payable and a credit to Cash

---

Definitions:

Disguised Gift

A transaction or transfer of property where the true intent is to give the item rather than sell it at its full value.

Nominal Consideration

A token amount in a contract to validate it, which may not necessarily reflect the true value of the contract's subject matter.

Consideration

Something of value (such as money, service, promise, or goods) that is given by both parties to a contract that compels mutual obligation.

Charitable Purpose

involves activities carried out for the benefit of the public, such as alleviating poverty, advancing education, religion, or other activities serving the public interest.