Which of the Following Journals Would a Company Use to Record

question 168

Multiple Choice

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

• A) Cash receipts journal.
• B) General journal.
• C) Cash disbursements journal.
• D) Sales journal.
• E) Purchases journal.

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Definitions:

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life to account for declines in value.

Earnings Before Interest And Taxes

A gauge of corporate profit that disregards expenses related to interest and income tax.

OCF

Operating Cash Flow, which is the cash generated from normal business operations, indicating a company's ability to generate sufficient positive cash flow to maintain and grow its operations.

Depreciation

Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.