41. What do bookkeepers do when they don’t know how to book something? Select all that apply.
- They ask for help from a best friend.
- They ask the business owner for more clarification.
- They make their best guess based on the information they have.
- They ask a fellow bookkeeper or accountant.
- They research online.
42. True or False. The Direct Write-Off Method adheres to the matching principle because it lets businesses write off debt that is believed to be uncollectible.
- False
- True
43. When a customer purchases something by cash or check, before it’s deposited into the bank, which account should it be entered into?
- Accounts Receivable
- Petty Cash
- Inventory
- Undeposited Funds
44. If a customer or vendor buys something on credit, but hasn’t made a payment in over 30 days, which receivable account should be used?
- “Doubtful” Receivable
- “Aging” Receivable
- Accounts Uncollectible
- Accounts Receivable