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:

Objectivity Concept

An accounting principle that requires financial and accounting information to be independent and based on measurable and verifiable data.

Unit of Measure

A standard quantity used to express a physical quantity, ensuring uniformity in the reporting of financial and operational data.

Business Entity Concept

An accounting principle that treats a business as separate from its owners or shareholders for financial reporting purposes.

Internal Users

Internal users are individuals or groups within an organization who use financial information to make decisions about the operations of the company, such as management and employees.