QQuestionAccounting
QuestionAccounting
Which of the following is an example of a cash disbursement?
A. $30 in cash received for a service rendered
B. A $200 cash payment for a product delivered
C. A $500 cash payment on accounts receivable
D. A check for $10 received for a service rendered
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Answer
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Step 1:I'll solve this accounting problem step by step:
Step 2:: Understand Cash Disbursement
A cash disbursement is a payment made in cash or cash equivalent (like a check) to settle an expense, purchase, or obligation. It represents money going out of a business.
Step 3:: Analyze Each Option
A. 30 in cash received for a service rendered - This is a cash receipt (money coming IN), NOT a disbursement - Incorrect answer B. A 200 cash payment for a product delivered - This is a cash payment made to purchase a product - This represents money going OUT of the business - This MATCHES the definition of a cash disbursement C. A 500 cash payment on accounts receivable - This is a payment to reduce an outstanding account receivable - This is also a cash disbursement - Technically correct, but not the best answer given the options D. A check for 10 received for a service rendered - This is a cash receipt (money coming IN), NOT a disbursement - Incorrect answer
Final Answer
A 200 cash payment for a product delivered is an example of a cash disbursement.
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