Future Business Leaders of America (FBLA) Accounting Practice Test

What document provides written acknowledgment for cash received?

1. Receipt

2. Invoice

3. Check

4. Statement

The correct answer is: Receipt

A receipt is the correct answer because it serves as a formal document confirming that a specific amount of cash has been received in exchange for goods or services. It typically includes essential details such as the date of the transaction, the amount received, the method of payment, and a description of the items or services provided. In accounting and business transactions, receipts are important for record-keeping purposes, aiding both the payer in tracking their expenses and the payee in acknowledging the income received. They also play a crucial role during audits or financial reviews, providing verifiable proof of transactions. In contrast, an invoice is a request for payment, not a confirmation of received cash. A check is a form of payment rather than a document that acknowledges receipt of cash, while a statement is typically a summary of transactions over a period and does not serve the same purpose as a receipt.