The Receiving Report

question 20

Multiple Choice

The receiving report

• A)is used to update the actual cost inventory ledger
• B)accompanies the goods to the storeroom
• C)is sent to general ledger
• D)is returned to the vendor to acknowledge receipt of the goods

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Definitions:

Net Income

Net income is the total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings, to enhance future earnings.

Repairs and Maintenance

Expenditures made to restore or maintain the functionality and efficiency of an asset without extending its useful life significantly.

Net Income

The amount of money a company has earned during a specific period, after all deductions are made.