Cash Jounals

What is the purpose of a Cash Receipts Journal?

• To record all transactions where cash is paid out

• To record all transactions where cash is received

• 
  To track inventory levels

• 
  To record credit sales

When recording a cash sale in the Cash Receipts Journal, which of the following accounts is credited?

• Sales

• Inventory
• Accounts Receivable
• Cash

Which of the following is a source document for recording entries in the Cash Payments Journal

• Credit memo
• Cash disbursement voucher
• Sales invoice
• Cheque Number

What is the primary difference between the Cash Receipts Journal and the Cash Payments Journal?

• The Cash Receipts Journal and the Cash Payments Journal are the same and can be used interchangeably.
• The Cash Receipts Journal records incoming cash, while the Cash Payments Journal records outgoing cash.
• The Cash Receipts Journal records outgoing cash, while the Cash Payments Journal records incoming cash.
• The Cash Receipts Journal is used for recording credit transactions, while the Cash Payments Journal is used for recording cash transactions.

Which of the following would NOT be recorded in the Cash Payments Journal?

• Cash payments for the purchase of inventory
• Payment of Rent

• Purchase of Inventory on Credit

• Cash payments for the purchase of land

Which account is debited when recording a transaction in the Cash Payments Journal?

• Cash
• Sales Revenue
• Accumulated Depreciation
• Accounts Payable

What type of transactions would be recorded in the Cash Receipts Journal?

• Credit card transactions
• Cash Sales

• Payment of laon

• Purchase of Equipment on Credit

Which document would be used as a source document for recording a cash sale in the Cash Receipts Journal?

• Purchase order
• Bank statement
• Sales receipt or sales invoice
• CRS

When a company makes a cash payment for rent, how is this recorded in the Cash Payments Journal?

• Debit to Inventory account and credit to Cash account
• Debit to Rent Expense account and credit to Cash account
• Debit to Utilities Expense account and credit to Cash account
• Debit to Accounts Receivable account and credit to Cash account

When a company makes a credit payment for equipment, what Journal is this recorded in?

• Sales Journal

• Cash Payments Journal

• General Journal

• Cash Receipts Journal