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 is responsible for managing all cash-related transactions, including: - Receipts from customers. - Payments to suppliers. - Electronic funds transfers (EFTs). This sub-system ensures the accurate recording and monitoring of liquid funds, which are critical for the day-to-day operations of a business. \vspace{0.5cm}