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A company’s current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. Its acid-test ratio equals:

The expense recognition (matching) principle, as applied to bad debts, requires:

A perpetual inventory system is able to directly measure and monitor inventory shrinkage and there is no need for a physical count of inventory.

An invoice is an itemized statement of goods prepared by the customer listing the customer’s name, items sold, sales prices, and terms of sale.

The payee is the person who signs a check, authorizing its payment.

Quick assets include cash and cash equivalents, inventory, and current receivables.

An internal control system consists of the policies and procedures companies use to protect assets, ensure reliable accounting, promote efficient operations, and uphold company policies.

Maintaining adequate records is an important internal control principle.

At the end of the day, the cash register’s record shows $2,050, but the count of cash in the cash register is $2,058. The correct entry to record the cash sales is

On September 12, Ryan Company sold merchandise in the amount of $5,800 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Johnson uses the periodic inventory system and the net method of accounting for purchases. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Johnson makes on September 18 is: