If There Is No Cash Involved in a Business Transaction,the

question 148

Multiple Choice

If there is no cash involved in a business transaction,the transaction should be recorded in ________.

• A) either the cash receipts journal or general journal
• B) either the sales journal or purchases journal
• C) the general journal only
• D) sales journal, purchases journal, or general journal

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Definitions:

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used in preparing financial statements.

Debits and Credits

Debits and credits are the fundamental components of accounting, representing increase or decrease in accounts to record transactions in double-entry bookkeeping.

Financial Statements

Summarized records of a company's financial activities, including the balance sheet, income statement, and cash flow statement, presented over a specific period.