A Canceled Check Written by the Client, Made Payable to a Local

question 91

True/False

A canceled check written by the client, made payable to a local supplier and drawn on the client's bank account is one type of internal document.

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Definitions:

Cash Revenues

Income generated from transactions that involve the immediate receipt of cash from customers.

Cash Account

An account that records cash transactions including receipts, disbursements, and balances held in cash form by an entity.

Owner's Capital

The total equity of an owner in a company, representing the net assets belonging to the owner.

Prepaid Insurance

Payments made for insurance policies in advance; these are recorded as an asset until the coverage period elapses, at which point they become an expense.