The Following Data (In Thousands of Dollars) Have Been Taken

question 13

Multiple Choice

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year.
-The net operating income for the year (in thousands of dollars) was:

• A) $410
• B) $110
• C) $40
• D) $180

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Definitions:

Credit Memorandum

A document issued by a seller to a buyer, reducing the amount the buyer owes the seller under the terms of an earlier invoice.

Segregation Of Duties

An internal control measure that divides responsibilities among multiple employees to reduce risk of fraud or error.

Adjusted Cash Balance

The cash balance reported in the financial statements, adjusted for any outstanding checks and deposits in transit that have not yet been cleared or recorded by the bank.

Deposit In Transit

Refers to money that has been received and recorded by a business but has not yet been recorded by the bank.