Tutorial 2 - 1 What is the difference between cash and...

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1. What is the difference between cash and credit transactions? Cash transaction: Payment is made/collected immediately Credit transaction: Payment is made/collected at a future date, based on the credit period given 2. What is the difference between trade discounts and cash discounts? Trade discounts Percentage reduction granted to a customer from the list price due to the purchase of a large quantity Cash discounts Percentage reduction granted to a customer in order to encourage paying (earlier than the credit period given) within a specified period 3. What are the different types of cash in business? Briefly explain. There are three types of cash in business, i.e. cash, bank and petty cash: Cash account Cash in hand, kept in the office, by main Cashier Bank account Current account Petty cash book Small amount kept by Petty Cashier 4. What is the purpose of preparing a three column cash book? Briefly explain its format.
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  • Summer '16
  • Libron James
  • Math, Generally Accepted Accounting Principles, Overdraft, Discounts and allowances, Imprest system, petty cashier

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