Which statement best describes a cash sale transaction?

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Multiple Choice

Which statement best describes a cash sale transaction?

Explanation:
Cash sale means you receive payment at the time of the sale, in cash, and you record the sale as cash received. Because money is collected immediately, there’s no accounts receivable, and revenue is recognized right away. In practice, you would debit Cash and credit Sales Revenue, and if you’re also tracking inventory, you’d debit Cost of Goods Sold and credit Inventory. The other statements describe sales made on credit or purchases, which do not match the definition of a cash sale.

Cash sale means you receive payment at the time of the sale, in cash, and you record the sale as cash received. Because money is collected immediately, there’s no accounts receivable, and revenue is recognized right away. In practice, you would debit Cash and credit Sales Revenue, and if you’re also tracking inventory, you’d debit Cost of Goods Sold and credit Inventory. The other statements describe sales made on credit or purchases, which do not match the definition of a cash sale.

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