An Exception to Disbursements Being Made by Check Is Acceptable

question 151

Multiple Choice

An exception to disbursements being made by check is acceptable when cash is paid

• A) to an owner.
• B) to employees as wages.
• C) from petty cash.
• D) to employees as loans.

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Definitions:

Adjusting Entry Process

The method of updating the accounts at the end of an accounting period by recording accruals, deferrals, estimations, and period costs to ensure accurate financial statements.

Errors

Mistakes or inaccuracies in financial records or transactions.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed, considered a liability until fulfilled.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss of value due to age, wear, and tear, or obsolescence.