Question

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

System in which entry is recorded for cash as well as credit transactions.

Answer 1

System in which entry is recorded for cash as well as credit transactions- Accrual System

Explanation:
An accrual system records both the transactions, i.e. cash and credit transactions. According to the accrual concept, a business transaction is recorded as and when it occurs and not when the cash is paid or received.