Question

The cash receipts journal is used to record all transactions that include a debit to the Cash account. T/F...


The cash receipts journal is used to record all transactions that include a debit to the Cash account. T/F

Answer

A cash account is a trading account that mandates the account holder to pay for all securities acquired by the settlement date in cash. The account holder has chosen not to or has been denied the ability to acquire securities on margin. A buy on margin is one that is done using monies borrowed from of the brokerage.

Explanation:

The cash receipts journal is a form of accounting journal that exclusively records cash receipts throughout an accounting period and follows the golden rule of accounting - debit what comes in and credit what goes out. The cash receipts diary is used to record all bank transactions the receipt of cash, including cash sales, bank loan receipts, payment on account receipts, and the sale of many other assets such as capital assets.

Therefore,

Above Statement is True

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