The Document That Is Used to Prepare and Reconcile the Deposit

question 4

Multiple Choice

The document that is used to prepare and reconcile the deposit of cash and improve control over the custody of assets (cash) is the

• A)sales invoice.
• B)credit memo.
• C)remittance advice.
• D)cash receipts journal.

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Definitions:

Money Claims

Legal rights or entitlements to a certain amount of money, which can be the result of debts, damages, or other financial obligations owed to a person or entity.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable.

Direct Write-off Method

An accounting practice where uncollectible accounts receivable are directly removed from the books at the time they are deemed nonrecoverable.

Days' Sales in Receivables

A financial ratio that measures the average number of days that receivables remain outstanding before being collected.