Which of the Following Items Would Be Least Useful in Preparing

question 18

Multiple Choice

Which of the following items would be least useful in preparing a schedule of cash receipts?

• A) Expected revenue from cash sales.
• B) Number of units expected to be purchased.
• C) Service charges for credit card sales.
• D) Past accounts receivable collection experience.

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that records sales and purchases of inventory immediately through the use of computer systems.

Cost of Merchandise Sold

A reiteration focusing on the total expenses incurred by a company to sell its merchandise, including the cost of the goods themselves and any additional costs related to their sale.

Credit Card Sales

Transactions where customers use credit cards to pay for goods or services, resulting in receivables for the seller.

Periodically Recorded

Financial transactions or events that are recorded at regular intervals, such as monthly, quarterly, or annually.