Expenses That Fall Outside the Regular Operations of a Business

question 8

Multiple Choice

Expenses that fall outside the regular operations of a business are ________.

• A)generally a substantial part of net income
• B)recorded in the Retained Earnings account
• C)included under the other income and expenses section of the income statement
• D)not considered for the calculation of net income

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Definitions:

Replenishment

Replenishment involves the process of restocking goods or materials in inventory to maintain adequate levels to meet consumer demand or operational needs.

Bank Reconciliation

Bank reconciliation is the process of comparing and matching figures from the accounting records against those shown on a bank statement to ensure they are in agreement.

NSF Check

A check that cannot be processed because the account it's drawn on does not have sufficient funds.

Outstanding Checks

Checks that have been written and recorded in the paying entity's accounting system but have not yet been cashed or cleared by the bank.