Question

Which is an example of a cash transaction?

A): a TV streaming service payment automatically debited from a checking account on the 21st of each month
B): paying for gas at the pump with a credit card
C): taking out a student loan
D): financing a new car

Answer 1

A cash transaction is one where payment is made in physical currency at the time of purchase. An example of a cash transaction is paying for gas at the pump with a credit card.

Step-by-step explanation:

A cash transaction is a transaction where payment is made in physical currency, such as cash or coins, at the time of the purchase. In the given options, the example of a cash transaction is

Option B: Paying for gas at the pump with a credit card.

When you pay for gas at the pump with a credit card, the payment is immediately debited from your checking account, similar to making a payment with physical cash. Unlike other options mentioned, it does not involve taking out a loan or financing.

Answer 2

I would say A. Though I may be wrong. If we think about it, let’s use Netflix as an example. When you buy Netflix, most of the time you get a free-trial. After the free-trial ends, if you listed your credit card, it automatically pays it for another month. Which is considered a transaction.