Which Test Determines If an Item of Accounting Information Is

question 48

Multiple Choice

Which test determines if an item of accounting information is worthwhile collecting?

• A)cost test.
• B)cost/benefit test.
• C)worthwhile test.
• D)validation test.

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Definitions:

Journal Entry

A record in the accounting books that notes all the financial transactions of a business.

Accounts Receivable

Money owed to a business by its clients (customers) resulting from the sale of goods or services on credit.

T Accounts

A tool used in accounting to represent the debit and credit sides of a transaction for individual accounts.

Trial Balance

An accounting report that lists the balances of all ledgers summarized into debit and credit columns, used to verify the accuracy of bookkeeping entries.