Question

Give the word term or phrase which can substitute each of the following statements :

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

Answer 1

Business transaction in which cash is not paid or received immediately- Credit transaction

Explanation:
All those transactions which do not involve cash inflow or outflow, i.e. where goods are purchased or services are procured on credit or where goods are sold or services are rendered on credit, are known as credit transactions. For example, credit sales worth Rs 500 were made to Ram and credit purchases worth Rs 2,000 were made from Mohan.