1. With good internal controls, the person who handles cash can also
a. account for cash payments.
b. account for cash receipts from customers.
c. issue credits to customers for sales returns.
d. None of the above
2. “Bad debts” are the same as
a. doubtful accounts.
b. uncollectible accounts.
c. Neither of the above
d. Both a and b.
3. When recording credit or debit card sales using the net method,
a. cash received equals sales.
b. cash received equals sales minus the fee assessed by the card processing company.
c. cash received equals sales plus the fee assessed by the card processing company.
d. cash isn’t received by the seller until the customer pays his or her credit card statement.