Question

Jim Tree sold 3 items for cash. Where would Jim list the amount received?

1) Equipment assets
2) Liabilities (all payables)
3) Cash assets
4) Liabilities (owner equity)
5) Other assets (includes receivables)

Answer 1

Jim Tree would list the amount received under the Cash assets category.

Step-by-step explanation:

When Jim Tree sells an item for cash, the amount received would be listed under the Cash assets category. Cash assets represent the money that a person or business possesses, such as cash on hand or in a bank account.