ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -A cash purchase occurs when a business pays for goods or services immediately upon ordering or delivery. No credit is extended by the supplier. No account payable is created.
Detailed explanation-2: -A cash payment is bills or coins paid by the recipient of goods or services to the provider. It can also involve a payment within a business to employees in compensation for their hours worked, or to repay them for minor expenditures that are too small to be routed through the accounts payable system.
Detailed explanation-3: -A cash transaction is the immediate payment of cash for the purchase of an asset. Some market stock transactions are considered cash transactions although the trade may not settle for a few days.
Detailed explanation-4: -Cash is more than just a payment instrument. It allows people to hold money for saving purposes without default risk. It is useful for small person-to-person gifts and payments.