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

Question

Quizplus · Accepted Answer

If there is cash involved in a business transaction, it should be recorded in either the cash payments journal (for payments made) or the cash receipts journal (for cash received). These journals are specific to recording cash transactions and do not include other types of transactions, such as credit sales or purchases on account. The general journal may still be used for other types of transactions, but cash transactions should be recorded in the cash receipts or payments journal.

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