Receiving a Cheque from a Customer on Account Would Include

question 62

Multiple Choice

Receiving a cheque from a customer on account would include a:

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

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Definitions:

Assets

Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Subsidiary Corporation

A corporation wholly owned by another corporation (the parent corporation).

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Consolidation

The process of combining assets, liabilities, and other financial items of two or more entities into one.