What types of transactions might be recorded in a cash receipts journal?

The cash receipts journal is specifically designed to record all transactions that result in cash inflows to a business. This includes not only sales revenue where cash is received but also other types of receipts such as loans that the business has received, capital contributions from owners or investors, and any other monetary inflows.

By including sales, receipt of loans, and capital contributions, the cash receipts journal ensures that all sources of cash entering the business are documented. This is essential for maintaining accurate records of cash flows, which are fundamental for financial analysis and reporting. The comprehensive nature of this journal helps in tracking how cash is generated and allows for better cash management within the organization.

Other choices focus on more limited scopes. For instance, only mentioning sales and profit distributions omits significant types of cash inflows such as loans and contributions. Similarly, solely recording cash loans received or expense payments and non-cash transactions does not capture the full range of cash receipts that impact liquidity and operational capabilities. Thus, the correct answer encompasses a broader and more accurate range of transactions that belong in a cash receipts journal.