Cash And Bank Transactions Flashcards
What are business transactions?
Business transactions are activities that affect the financial position or operations of an enterprise.
What is capital?
Cash invested by the proprietor is called capital
What is cash transactions?
Cash transaction is a transaction where payment is settled immediately in cash
What is bank transactions?
Bank transactions refer to all receipts and payments made through the bank. An enterprise uses bank account to settle all receipts and payments. A business accepts cheques as receipt from customers and also issues cheques for the payment. A business can deposit its cash balances, pay its suppliers, withdraw money, issue cheques to pay a number of expenses and can use other facilities offered by commercial banks.
What is business transactions?
Business transactions are settled either in cash or through the bank by issuing cheques. It is important to have a proper accounting of cash and bank transactions. All cash and bank transactions are recorded in separate books, in order to have a systematic and permanent record. This enables a clear record of the cash and bank balance of an enterprise
What does bank transactions refers to?
Bank transaction refers to all receipts and payments made through the bank.
What does credit transactions refers to?
Credit transaction refers to a transaction whereby someone buys goods and services, which are paid at a later date.
What does cash receipt means?
Cash Receipts (Cash inflows)
When a business sells goods on cash, it receives revenue from the sale (Cash comes IN). Cash receipts are income to business and they increase the cash balance.
What does cash payments means?
Cash Payments (Cash outflows)
When a business pays cash for its goods purchased or its expenses, they are called Cash Payments (Cash goes OUT).
Cash payments are expenditures to a business.
Cash payments decrease the amount of cash in hand.
