Sales Revenue Received in Cash Is Entered by

question 30

Multiple Choice

Sales revenue received in cash is entered by

• A) debiting Cash and crediting Sales Revenue.
• B) debiting Sales Revenue and crediting Cash.
• C) debiting Cash and crediting Accounts Payable.
• D) debiting Accounts Payable and crediting Cash.

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Definitions:

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, usually with interest.

Financial Leverage

Financial leverage describes the use of borrowed funds to increase the potential return of an investment.

Liabilities

Financial obligations or debts owed by a company to creditors or suppliers, which must be settled over time.

Posting

the process of transferring journal entries to respective accounts in the ledger.