Chapter 15 - Business Financial Records

Total deposits less the total checks written can tell a business how well it is doing.

• True

• False

Systems for keeping accounting records can require no equipment or be highly computerized.

• True

• False

Accountants complete many of the day-to-day data entry and records management activities in large and small businesses.

• True

• False

The use of budgets and a budgeting system guarantees the success of a business.

• True

• False

Merchandise inventory is the value of goods purchased to sell to customers at a profit.

• True

• False

A point-of-sale terminal can be used to calculate when merchandise should be reordered.

• True

• False

Business expenses for advertising, supplies, and maintenance are examples of operating expenses.

• True

• False

An income statement is a financial report that would primarily be used for internal control of cash.

• True

• False

When a petty cash fund is used, it is NOT necessary to keep a written record of all money paid out of the fund.

• True

• False

Accounts receivable are current assets.

• True

• False