If There Is Cash Involved in a Particular Business Transaction

question 120

Multiple Choice

If there is cash involved in a particular business transaction then the transaction should be recorded in either:

• A)cash payments journal or cash receipts journal.
• B)cash payments journal or general journal.
• C)cash payments journal or cash receipts journal and in general journal.
• D)sales journal or purchases journal.

---

Definitions:

Interest Rate

The cost of borrowing money expressed as a percentage of the amount borrowed or the return on investment.

Investment

The allocation of resources, often financial, into assets or projects expected to yield future returns or benefits.

Money Supply

The entirety of assets available in monetary form within an economy's borders at a particular moment, consisting of cash, coinage, and records of balances in savings and checking accounts.

Aggregate Demand

The total amount of goods and services in an economy that will be purchased at all possible price levels in a given period.