A cash sale is typically paid immediately with acceptable payment methods.

A cash sale is typically paid immediately with acceptable payment methods.

• A. It records as a later settlement
• B. It is paid within 30 days
• C. It is paid immediately with cash, check, or a credit or a debit card
• D. It requires a promissory note

Answer: (C)

A cash sale means payment is received at the time of the sale using accepted methods such as cash, check, or a credit or debit card. Because the payment is collected immediately, there is no outstanding receivable and the sale is settled right away. Other options describe payments that are deferred or formal IOUs: recording as a later settlement, paying within 30 days, or using a promissory note.

A cash sale means payment is received at the time of the sale using accepted methods such as cash, check, or a credit or debit card. Because the payment is collected immediately, there is no outstanding receivable and the sale is settled right away. Other options describe payments that are deferred or formal IOUs: recording as a later settlement, paying within 30 days, or using a promissory note.