Evidence of Cash Sales Is Usually Supported by

question 91

Multiple Choice

Evidence of cash sales is usually supported by

• A)purchase invoices.
• B)sales invoices.
• C)purchase orders.
• D)cash register tapes.

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Definitions:

Variable Costing

A costing method where only variable manufacturing costs are included in the cost of goods sold, with fixed manufacturing overhead treated as a period expense.

Absorption Costing

An accounting method that includes all manufacturing costs (both fixed and variable) in the cost of a product.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, reflecting the actual profitability.

Absorption Costing

A method of accounting that incorporates both variable and fixed manufacturing expenses into the pricing of a product.