When a Customer Deposit Is Recorded Using the Make Deposits

question 22

Multiple Choice

When a customer deposit is recorded using the Make Deposits window,behind the screen QuickBooks converts the transactions into a journal entry that:

• A)Debits Checking account,Credits Undeposited Funds
• B)Credits Checking account,Debits Undeposited Funds
• C)Debits Checking account,Credits Accounts Receivable
• D)Debits Accounts Receivable,Credits Checking account

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Definitions:

Salary Allowances

Pre-determined sums paid to employees over their regular salary, allocated for specific purposes such as transportation, housing, or meals.

Income Distribution

The process by which earned income is distributed among various stakeholders, including dividends to shareholders and payments to other entities.

Capital Balances

The amount of money that owners have invested in a company plus retained earnings or minus any losses.