What transaction does the source document provide evidence of?

Question

BlackTom AI · Accepted Answer

The document shows Fidget Toys R Us paid cash to Relaxation Games to buy inventory.

Relevant knowledge points:
- A source document records who sold and who bought goods, the item type (inventory), and the payment method (cash or credit/terms).
- “Purchased inventory” means one party acquired goods for resale, increasing Inventory and decreasing Cash (if paid immediately) or increasing Accounts Payable (if bought on credit).
- Clues that indicate cash: words like “paid,” “cash,” a dollar amount with no credit terms, or a receipt/receipt number; clues for credit: phrases like “on account,” “net 30,” or “terms.”

Step-by-step reasoning:
1. Identify the parties: the document names Fidget Toys R Us and Relaxation Games. Determine which is the buyer and which is the seller from wording such as “Sold to” vs “Purchased by,” or a receipt showing a payment from one party to the other.
2. Identify the item: the document lists inventory or specific goods, indicating an inventory purchase rather than a service.
3. Identify payment method: the document indicates immediate payment (e.g., “Cash,” “Paid,” or a receipt) and does not show credit terms or due date. Therefore the transaction is cash-based, not on credit.

Why the correct answer is correct:
- It matches all three elements: buyer = Fidget Toys R Us, seller = Relaxation Games, and payment = cash. That corresponds exactly to “Fidget Toys R Us purchased inventory for cash from Relaxation Games.”

Why the other options are incorrect:
- Option 2 and 4 describe purchases “on credit” (accounts payable), but the source shows cash payment, not credit terms.
- Option 3 reverses buyer and seller (says Relaxation Games purchased from Fidget Toys R Us), which contradicts the document’s identified buyer.
- Option 5 states Relaxation Games paid Fidget Toys R Us, reversing payer and payee.

Conclusion: The evidence supports “Fidget Toys R Us purchased inventory for cash from Relaxation Games,” confirming the provided answer.

What transaction does the source document provide evidence of?单项选择题

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