If a check that was outstanding on last period’s bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period’s reconciliation, the amount of this check should be:

Outstanding checks are checks the bank has paid and deducted from the customer’s account during the month.

If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company’s books for $794, how should this error be treated on the bank reconciliation?

Cushman Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. Cost of goods sold equals:

A company uses the perpetual inventory system and recorded the following entry:   Accounts Payable 2,500   Merchandise Inventory   50 Cash   2,450 This entry reflects a:

Which of the following accounts is used in the periodic inventory system but not used in the perpetual inventory system?

Mega Skateboard Supplier had net sales of $2.8 million, its cost of goods sold was $1.6 million, and its net income was $0.9 million. Its gross margin ratio equals:

Frederick Company borrows $63,000 from First City Bank and pledges its receivables as security. Which of the following is true regarding this transaction:

If goods are shipped FOB destination, the seller does not record revenue from the sale until the goods arrive at their destination because the transaction is not complete until that point.

When a note receivable is dishonored, it reverts to an account receivable.