When Using a Manual Accounting Information System, Which of the Following

question 40

Multiple Choice

When using a manual accounting information system, which of the following will be recorded in the general journal?

• A)depreciation on equipment
• B)payment of accounts payable
• C)purchase of merchandise inventory on account
• D)receipt of cash from a debtor

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Definitions:

Cash Number

A numerical value representing the amount of liquid assets or cash available to an entity at a specific point in time.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, usually used to assess liquidity.

Budget Committee

A group of key managers who are responsible for overall budgeting policy and for coordinating the preparation of the budget.

Detailed Budgets

Comprehensive financial plans that itemize future projected income and expenses.