Evidence That Would Not Be of Help in Recording a Transaction

question 36

Multiple Choice

Evidence that would not be of help in recording a transaction would be:

• A)a cheque
• B)an advertising brochure
• C)an invoice
• D)a cash register record

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Definitions:

Net Income

The amount of money a business keeps as profit after all expenditures, taxes, and costs are deducted from its aggregate revenue.

Preferred Dividends

Dividends that are allocated and paid to preferred shareholders before any dividends can be issued to common shareholders.

Operating Expenses

Costs that a business incurs through its normal business operations, excluding cost of goods sold.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.