There Are Two Records of a Business's Cash

question 150

Multiple Choice

There are two records of a business's cash:

• A) the cash account in the general ledger and the petty cash box.
• B) the cash account in the general ledger and the journal entries from the bank reconciliation.
• C) the bank statement and the cash account in the general ledger.
• D) the bank statement and the cash in petty cash.

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Definitions:

Break-even Point

The break-even point is the point at which total costs equal total revenues, resulting in neither profit nor loss for the business.

Estimated Fixed Costs

Forecasted expenses that do not vary with the level of production or sales over a specific period of time.

Net Sales

This refers to the total revenue from sales minus returns, allowances for damaged or missing goods, and discounts.

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.