The Class Option Bank Is Needed for Accounts Used for -

question 28

Multiple Choice

The class option Bank is needed for accounts used for -

• A) payments by cheque in the purchases and payments journals
• B) deposits of receipts from customers
• C) credit card receipts from customers
• D) a and b above are correct

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Definitions:

Periodic Inventory System

An inventory valuation method where the ending inventory and cost of goods sold are determined at the end of the accounting period.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific category, supplementing the general ledger.

Consignment

An arrangement where goods are left with a third party to sell, but ownership remains with the supplier until the goods are sold.

Consignee

The retailer in a consigned inventory arrangement.