A Remittance Advice Attached to a Company Check Provides

question 70

Multiple Choice

A remittance advice attached to a company check provides

• A)details about the running cash balance in the checking account.
• B)the magnetic bank routing numbers.
• C)the explanation of the purpose of the check.
• D)the signature space for the maker.

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Definitions:

Accrual Basis

A bookkeeping approach that logs income and expenses at the time they are accrued, without taking into account the timing of the cash flows.

Cash Basis

An accounting method where revenues are recognized when cash is received, and expenses are recognized when cash is paid out.

Administrative Expenses

Expenses incurred that are not directly tied to a specific function like manufacturing, production, or sales, usually including items like rent, utilities, and management salaries.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, salaries, and maintenance, but not including cost of goods sold.