Which of the Following Types of Transactions Would Be Routine

question 5

Multiple Choice

Which of the following types of transactions would be routine and computerized?

• A)Capital stock sales and repurchases
• B)Credit sales and billings
• C)Income tax expense and liability
• D)Bank loan transactions

---

Definitions:

Adjusting Entry

A record finalized at the close of a financial period for assigning earnings and costs to the actual period of occurrence.

Estimated Returns Inventory

An accounting method used to estimate the value of goods that are expected to be returned by customers.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting operating expenses, interest, and taxes.

Fiscal Year

A 12-month period used for accounting purposes and planning by organizations, which may not align with the calendar year.