Question

The objective of preparing a ______ account is to find out the cash position of the organization.

Options

• Receipts and Payment Account

• Balance Sheet Account

• Trading Account

• Trial balance account

Answer 1

The objective of preparing a Receipts and Payment Account account is to find out the cash position of the organization.

Explanation:

Receipts and Payment Accounts are used to determine the cash position since they are a summary of the cash book that includes both cash and bank transactions.