A Is a Written Contract Obligation, Usually Under Seal, Generally

question 5

Multiple Choice

A is a written contract obligation, usually under seal, generally issued by a corporation, a municipality, or a government, that contains a promise to pay a fixed amount of money at a set or determinable future time.

• A)bond
• B)draft
• C)check
• D)coupon

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Definitions:

Perpetual System

An inventory system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period for accurate financial reporting.

Sales Revenue Section

The part of a financial statement that details the income generated from sales of goods or services before any costs or expenses are subtracted.

Merchandising Company

A business that purchases goods wholesale and sells them retail; primarily involved in the selling of merchandise.