- 1 Marks
Question
What does a receipt and payment account represent in accounting?
A. A summary of cash receipts and payments, including both accruals and cash transactions
B. A summary of cash receipts and payments during the accounting period, without considering accruals
C. A record of all revenue transactions in the accounting period, irrespective of cash inflows or outflows
D. A record of all capital transactions, including cash receipts and payments, during the accounting period
E. A record of all non-cash transactions in the accounting period, excluding cash receipts and payments
Answer
Answer:
B. A summary of cash receipts and payments during the accounting period, without considering accruals
Explanation:
A receipt and payment account is a summary of all cash and bank transactions during a given accounting period. It focuses on actual cash inflows and outflows and does not account for accruals, making it a straightforward record of cash movement within the accounting period.
- Tags: Accounting, Financial Statements, Receipt and Payment Account
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: MAY 2024
- Uploader: Dotse