Australia Company Sells a Product for $500 Cash to Martin

question 64

Multiple Choice

Australia Company sells a product for $500 cash to Martin and Lewis Enterprises.This transaction will be recorded in the ________.

• A) cash payments journal
• B) sales journal
• C) cash receipts journal
• D) purchase journal

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Definitions:

Financial Accounting Standards Board

An independent, private-sector body that establishes and interprets Generally Accepted Accounting Principles (GAAP) in the United States.

IRS

The IRS (Internal Revenue Service) is the United States federal agency responsible for collecting taxes and administering the Internal Revenue Code.

SEC

The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.

AICPA

The American Institute of Certified Public Accountants, a professional organization for Certified Public Accountants (CPAs) in the United States.