A Benefit of Using a Records Retention Schedule Is That

question 11

Multiple Choice

A benefit of using a records retention schedule is that

• A) vital records will not be disposed of prematurely.
• B) valuable historical records will be preserved.
• C) records that are no longer needed can be disposed of systematically.
• D) All of the above

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Definitions:

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Cost Of Raw Materials Used

The total expense incurred by a company for the raw materials that were consumed in the production process during a specific period.

Permanent/Temporary

Categories of accounts in accounting where permanent accounts are those that carry over balances into the next fiscal year, and temporary accounts are closed at the end of each fiscal year.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.