The Economic Essence of One of the Following Should Not

question 93

Multiple Choice

The economic essence of one of the following should not be reported in the balance sheet as a current liability. Which one is not reported?

• A)Free sandwich offers printed on hockey ticket stubs
• B)Amounts sued for damages associated with injuries from an allegedly defective weed eater
• C)Mail-in rebates from software by software companies
• D)Amounts payable to an employee for a recent expense report

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Definitions:

Bank Reconciliation

The process of reconciling the checkbook balance with the bank balance given on the bank statement.

Phishing

Fake e-mails that attempt to obtain information about online banking customers.

Drawee

The party in a draft or bill of exchange who is directed to pay, typically a bank.

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure financial accuracy, and promote operational efficiency.