Advertisements
Advertisements
Question
The objective of preparing a ______ account is to find out the cash position of the organization.
Options
Receipts and Payment Account
Balance Sheet Account
Trading Account
Trial balance account
Solution
The objective of preparing a Receipts and Payment Account account is to find out the cash position of the organization.
Explanation:
Receipts and Payment Accounts are used to determine the cash position since they are a summary of the cash book that includes both cash and bank transactions.
APPEARS IN
RELATED QUESTIONS
Write any two features of the Receipt and Payment Account.
State five uses of Receipts and Payments account.
In receipt and payment account opening balance of cash in hand, cash at bank and all cash receipts are shown on the ______ side.
It alerts the management of a non-trading organisation about decline in cash receipts and increase in cash payments.
It contains both capital and revenue items.
Receipt and Payment account is a _____ account.
Give one difference between Receipts and Payments Account and Cash Book.
A receipts and payments account is a nominal account. Justify a reason either for or against.
Mention any two features of Receipts and Payments Account.
What is Receipts and Payments Account?
