If There Is Cash Involved in a Business Transaction,the Transaction

question 115

Multiple Choice

If there is cash involved in a business transaction,the transaction should be recorded in either the ________.

• 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

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Definitions:

Accounting Principles

Guidelines and rules that govern the process of reporting financial information and preparing financial statements.

Deferred Tax Asset

An item on a company's balance sheet that is used to decrease future tax liability due to temporary timing differences in income recognition.

Warranty Costs

Expenses incurred by a company for repairing, replacing, or refunding products that have failed within the warranty period.

Income Tax Rate

The income tax rate is the percentage at which an individual or corporation is taxed on their income, varying by jurisdiction and income level.