A Typical Transaction Activity for Sales, Billing, and Cash Receipts

question 103

Multiple Choice

A typical transaction activity for sales, billing, and cash receipts are:

• A) cash disbursements.
• B) purchase returns.
• C) purchase allowances.
• D) estimating bad debts expense.
• E) purchase discounts.

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Definitions:

Dividends Declared

The announcement by a company’s board of directors of the payment of a specified amount per share to its shareholders, to be paid on a certain date.

Accounting Record

Documentation that contains the financial history and transactions of a company.

Shareholders' Equity

The amount of a company's total assets minus its total liabilities, representing the owners' share of the company.

Normal Balance

The side (debit or credit) on which increases to an account are recorded, based on the type of account.