For Each of the Following, Identify in Column 1 the Category

question 80

Essay

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.
- $$\begin{array} { | l | c | c | c | } \hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \\\hline \text { Sales } & & & \\\hline\end{array}$$

Record the replenishment and expenses related to petty cash funds correctly.

Distinguish between the balance sheet presentation of accounts receivable and the associated debt instruments.

Understand and apply the principles of notes receivable discounting and their impact on financial statements.

Identify and correct errors in the recording of cash transactions and the preparation of bank reconciliations.

---

Definitions:

Lockbox System

A service offered by banks to companies for receiving payments from customers; the bank collects and processes these payments directly to speed up the deposit process.

Firm Implementation

The process of putting a business strategy or plan into action to achieve its goals and objectives.

Float

The time difference between when a check is written and when the funds are actually withdrawn from the account, or the number of shares available for trading of a particular stock.

Smart Card

A smart card is a plastic card embedded with a microprocessor chip, which can store and process data, used for various purposes such as financial transactions, identification, and access control.