A remittance advice:
A. enhances the safe deposit of cash in the bank.
B. reduces the risk of cash-handling errors.
C. ensures cash sales are properly recorded in the accounting records.
D. explains the purpose of a customer's payment.
Answer: D
You might also like to view...
Davis Corp invested cash in a 9-month certificate of deposit (CD) on October 1, 2015 . If Davis has an accounting period which ends on December 31, 2015, when would it most likely recognize interest revenue from the CD?
a. On December 31, 2015 only b. On July 1, 2016 only c. Both Dec. 31, 2015 and July 1, 2016 d. On October 1, 2015
Second National Bank computes interest semiannually. If the annualized interest rate (APR) is currently 6 percent, the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?
A) 20 periods at 12 percent B) 20 periods at 3 percent C) 10 periods at 6 percent D) 10 periods at 3 percent
Answer the following statements true (T) or false (F)
1. A company produces 100 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures the circuit in-house but is considering outsourcing the circuits at a contract cost of $28 each. Currently, the cost of producing circuits in-house includes variable costs of $26 per circuit and fixed costs of $5,000 per month. The controller says that they should outsource production of the circuit, if it reduces fixed cost more than $200 per month. Is this statement true or false? 2. Deeper Clean Company makes bulk quantities of cleaning fluids. They currently sell 1,300 containers a month at a sales price of $24 per unit. If they add a new scent, they could charge $28 per unit for the improved product. It would cost them a total of $900 per month to make that alteration. If they decide to process further, it will improve their operating income. 3. Blue Streak Company makes a special kind of racing tire. Variable costs are $340, and fixed costs are $35,500 per month. Blue Streak sells 610 units per month at a sales price of $410. If Blue Streak upgrades the quality of the tire, management believes that the sales price can be increased to $450. If so, the variable cost will increase to $350, and the fixed costs will rise by 30%. The CEO wishes to increase his operating income by at least 20%. If the company decides to upgrade the product, the CEO will reach his goal.
Under which accounting method are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?
A) Under the cash basis of accounting B) Under the accrual basis of accounting C) Under the percentage of sales method of accounting D) Under the direct write-off method of accounting