Typical Source Documents Involved in the Revenue and Collection Cycle

question 32

Multiple Choice

Typical source documents involved in the revenue and collection cycle would be ________.

• A) cash disbursements
• B) shipping documents
• C) inventory listings
• D) vendor invoices

Identify the conditions under which an asset is depreciated or amortized, including leasehold improvements and intangible assets.

Understand the accounting treatment for gains, losses, and disposal of assets.

Recognize the accounting treatment for research costs and internally generated intangible assets.

Understand the methods and rationale behind disposing of property, plant, and equipment.

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Definitions:

Credit Accounts

Accounts that are increased by credits and decreased by debits, reflecting liabilities and shareholder equity.

Owner's Equity

The amount of assets in a company that belongs to the owners after deducting liabilities; also known as shareholders' equity.

Capital Account

An account on the balance sheet that represents the equity or ownership interest of owners in the business.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.