Question

Business transaction in which cash is not paid or received immediately is known as ______________.

• A. Cash transaction
• B. Non monetary transaction
• C. Credit transaction
• D. Transaction in kind

Answer 1

The correct option is C Credit transaction

Transactions are the building blocks of accounts. Any transaction that occur within the business should be present in the accounting records. Credit transaction means any transaction by the terms of which the repayment of money loaned or loan commitment made, payment for goods, services or properties sold or leased is to made at a future date or dates. Credit transactions are paid at a later date than when the exchange of goods or services take place and almost at the time when the invoice for the transaction is issued.