Answered: In a Cash System, you only record…

Business

Accounting

In a Cash System, you only record transactions when money exchanges hands. True O False

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter9: Accounting For Purchases And Cash Payments

Section9.4: Accounting For Cash Payments

Problem 6AYU

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

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In a Cash System, you only record transactions when money exchanges hands.
True
O False

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Suppose we collected cash from a charge customer and the debit was to Cash and the credit to Sales. How and when would this error be discovered?
Petty cash is used to ________. A. avoid having to use checks frequently B. make small payments C. avoid having to retain receipts because the amounts are very small D. avoid having to get approvals due to the small amount of cash being paid
Which of the following does not explain the differences between the bank statement balance and the customers cash balance? a. Deposit in transit b. Canceled checks c. An NSF check d. Errors e. Interest income
Which of the following is not an advantage of the cash receipts journal? a. Transactions do not have to be posted on a regular basis. b. Transactions can be recorded on one line. c. Transactions involving debits to Cash are recorded in one place. d. Repetition in posting is eliminated. e. Special columns can be used for similar transactions.