{"id":52116,"date":"2024-04-15T23:34:36","date_gmt":"2024-04-15T23:34:36","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=52116"},"modified":"2024-04-15T23:34:36","modified_gmt":"2024-04-15T23:34:36","slug":"when-cash-is-received-from-contractee-which-a-c-should-be-credited","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/when-cash-is-received-from-contractee-which-a-c-should-be-credited\/","title":{"rendered":"When cash is received from contractee which a\/c should be credited."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Cash a\/c&#8221; option2=&#8221;Contract a\/c&#8221; option3=&#8221;Contractor a\/c&#8221; option4=&#8221;Contractee a\/c&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>A. Cash a\/c<\/strong><\/p>\n<p>When cash is received from a contractee, the cash account should be credited. This is because the cash account is a liability account, and when cash is received, the liability is reduced. The contract account is an asset account, and the contractor account is an equity account. Neither of these accounts should be credited when cash is received from a contractee.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li><strong>Cash a\/c:<\/strong> The cash account is a liability account that represents the amount of cash that a company has on hand. When cash is received from a contractee, the cash account should be credited. This is because the cash account is a liability account, and when cash is received, the liability is reduced.<\/li>\n<li><strong>Contract a\/c:<\/strong> The contract account is an asset account that represents the amount of money that a company is owed for work that has been completed. When cash is received from a contractee, the contract account should not be credited. This is because the contract account is an asset account, and when cash is received, the asset is not reduced.<\/li>\n<li><strong>Contractor a\/c:<\/strong> The contractor account is an equity account that represents the amount of money that a company owes to a contractor for work that has been completed. When cash is received from a contractee, the contractor account should not be credited. This is because the contractor account is an equity account, and when cash is received, the equity is not reduced.<\/li>\n<\/ul>\n<p>I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Cash a\/c&#8221; option2=&#8221;Contract a\/c&#8221; option3=&#8221;Contractor a\/c&#8221; option4=&#8221;Contractee a\/c&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-52116","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When cash is received from contractee which a\/c should be credited.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/when-cash-is-received-from-contractee-which-a-c-should-be-credited\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"When cash is received from contractee which a\/c should be credited.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Cash a\/c&#8221; option2=&#8221;Contract a\/c&#8221; option3=&#8221;Contractor a\/c&#8221; option4=&#8221;Contractee a\/c&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/when-cash-is-received-from-contractee-which-a-c-should-be-credited\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:34:36+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"When cash is received from contractee which a\/c should be credited.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/when-cash-is-received-from-contractee-which-a-c-should-be-credited\/","og_locale":"en_US","og_type":"article","og_title":"When cash is received from contractee which a\/c should be credited.","og_description":"[amp_mcq option1=&#8221;Cash a\/c&#8221; 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