Important Documents and Records Used in Processing Sales Adjustments Include

question 49

Multiple Choice

Important documents and records used in processing sales adjustments include all of the following except:

• A) sales return authorization
• B) receiving report
• C) debit memo
• D) authorization for accounts receivable write-off
• E) journal entry

---

Definitions:

Excess Reserves

Funds that banks hold over and above the legal requirements, which can influence their ability to lend.

Deposits

Funds placed into an account at a financial institution for safekeeping and to earn interest.

Excess Reserves

Excess reserves are the funds that banks hold over and above the required minimum reserves mandated by central banking regulations, often stored in central banks.

Treasury Bonds

Long-term government securities issued by the U.S. Department of the Treasury. They carry a fixed interest rate and have maturities ranging from 20 to 30 years.