Question

Name the Accounting Information sub-system which deals with receipt and payment of cash and electronic funds transfer:

• A. Sales and Accounts Receivable sub-system
• B. Purchase and Accounts Payable sub-system
• C. Cash and Bank sub-system
• D. Costing sub-system

Hint:

The Cash and Bank sub-system is integral to managing liquid funds, ensuring that cash flows are accurately recorded and reconciled with the bank.

Answer 1

The Correct Option is C

The Cash and Bank sub-system handles all cash transactions, such as:- Customer receipts.- Supplier payments.- Electronic Funds Transfers (EFTs).This system accurately records and monitors liquid funds, essential for daily business operations.\vspace{0.5cm}