Customer Deposits and Prepayments to Suppliers Are Similar as -

question 8

Multiple Choice

Customer deposits and prepayments to suppliers are similar as -

• A)both increase the bank balance and use the same journal
• B)both are required when an order is placed
• C)both are entered as negative amounts because they reduce the amount owing
• D)both reduce the amount owing on the invoice

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Definitions:

Management's Discussion

A section of a company’s annual report where management presents an analysis of the company’s performance, future prospects, and financial health.

Annual Reports

Comprehensive statements that provide information on a company's activities, financial performance, and strategy over the past fiscal year.

Off-Balance-Sheet

Financial obligations or assets not recorded on a company's balance sheet, often due to being contingent or uncertain.

Disposal of a Segment

The act of selling, liquidating, or otherwise eliminating a division or segment of a business.