Which of the Following Is True of a Cash Receipts

question 135

Multiple Choice

Which of the following is true of a cash receipts journal?

• A)In a cash receipts journal, cash sales are recorded in the Accounts Receivable CR column and the Cash DR column.
• B)In a cash receipts journal, collections on account are recorded in the Accounts Receivable DR column and the Cash DR column.
• C)It ignores the miscellaneous cash receipt transactions.
• D)In a cash receipts journal, the sales for cash will have entries in the Sales Revenue CR column.

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Definitions:

Goodwill

The value attributed to a company's brand name, customer base, good customer relations, good employee relations, and any patents or proprietary technology during acquisitions.

Personal Use

Utilization of property, goods, or services for individual rather than business or commercial purposes.

Partnership

A business arrangement that is legally recognized, involving two or more partners sharing both management responsibilities and profits.

Articles of Partnership

A document that specifies the terms and conditions under which a partnership operates, including the rights and responsibilities of each partner.