Accounting · Source Documents
How is credit generally documented in business transactions?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Credit is generally formalized by obtaining a written document called an Instrument of Credit, which outlines the terms of the credit agreement.✓
- 2Credit transactions are documented only in informal receipts provided to customers.
- 3Credit transactions do not require any documentation and are simply recorded in the bank statements.
- 4Credit transactions are recorded in the cash flow statement without the need for any formal documentation.
Correct answer
Credit is generally formalized by obtaining a written document called an Instrument of Credit, which outlines the terms of the credit agreement.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Source Documents MCQs →Want more practice questions on Source Documents?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Source Documents