The Scheme Where Normally the Books Are "Closed" at the End

question 48

Multiple Choice

The scheme where normally the books are "closed" at the end of each reporting period, and sales that occur after the closing date do not appear in the current-period income statement is called:

• A) Sham sales.
• B) Recognition of conditional sales.
• C) Improper cutoff of sales.
• D) Consignment sales.

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Definitions:

Fair Labor Standards Act

Legislation in the United States that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Time And A Half

A rate of pay that is 1.5 times the employee's standard hourly wage, typically awarded for overtime hours worked.

Normal Wage

The standard or average amount of pay that workers receive for their labor in a specific job or industry.

Petty Cash Fund

Cash kept on hand in the office for small purchases.