A cash transaction is actually using money you have at the time ; A credit transaction is spending money that you don't actually pay immediately , but at a later date
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∙ 11y agoPaying by cheque is a cash transaction. Assets: debit =increase credit=decrease
Purchase with a credit card is not considered a cash transaction, as the person making the purchase does not pay for the item until they pay their credit card bill, which may not occur until much later.
paper transaction is the transaction against which on credit or cash received or paid it is just in papers
paper transaction is the transaction against which no credit or cash received or paid it is just in papers.
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
explain the difference between cash and credit transaction
Paying by cheque is a cash transaction. Assets: debit =increase credit=decrease
paper transaction is the transaction against which on credit or cash received or paid it is just in papers
paper transaction is the transaction against which on credit or cash received or paid it is just in papers
Purchase with a credit card is not considered a cash transaction, as the person making the purchase does not pay for the item until they pay their credit card bill, which may not occur until much later.
paper transaction is the transaction against which on credit or cash received or paid it is just in papers
paper transaction is the transaction against which no credit or cash received or paid it is just in papers.
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
With Credit card you have to pay the credit company back later, cash is paid and over with if used.
Transaction that is settled with cash before or after the time of trade. dealings which you could pay for the good later.
An example of a Cash transaction would be: I walk into a Supermarket and pick out something for $1.00. I go to the register and pay with 1-$1.00 bill. This is an example of a "cash" transaction.A credit transaction which is also a "Debit" transaction, is a transaction where the POS (Point of Sale) electronically withdrawals money from the card holders account to be paid once your Financial institution processes your daily transactions.An example of Credit transaction would be: I walk into a Supermarket and pick out something for $50.00. I only have $10.00 in cash on hand so I pull out my Credit/Debit card and swipe it at the register.
A cash transaction uses currency (dollars and cents) to pay for products or services. A credit transaction means that you are posting the transaction to a credit card or loan. In this case, the merchant gets paid (often the next day) for products or services rendered, and you pay the loan issuer or credit card company back. Sometimes, there are fees involved (a percentage of the transaction amount) to use a credit card - especially if you don't pay the issuer back within the established terms, which is called interest and finance charges. Happy spending!!