Match Each Item to a Bank Statement Adjustment, a Company

question 34

Multiple Choice

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Error in recording a check

• A)Bank statement adjustment
• B)Company books adjustment
• C)Either

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Definitions:

Receivables Turnover

A financial ratio that measures how efficiently a company collects debt from its credit sales, calculated by dividing net credit sales by the average accounts receivable.

Inventory Turnover Ratio

A measure of how quickly a company sells its inventory within a given period, calculated by dividing the cost of goods sold by the average inventory.

Credit Sales

Sales made by a business allowing the customer to pay at a later date, often tracked through accounts receivable.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.