What accounting records are used for cash inflows and outflows, and how are overhead costs defined?

Question 22:
The cash receipts journal is used to record all cash inflows into the business, including daily cash sales.
The correct option is C.
C) Cash receipts journal

Question 23:
The cash payments journal is used to record all cash outflows from the business, including daily cash purchases.
The correct option is C.
C) Cash payments journal

Question 24:
Overhead costs are indirect costs that are not directly tied to the production of goods or services.

• Stationery, advertising, and insurance cover are generally considered overhead costs (indirect expenses).
• The cost of a spare part for a small car, especially if the car is used directly in operations (e.g., a delivery vehicle or a service vehicle), would typically be considered a variable cost or a direct cost related to the operation, rather than a fixed overhead. The correct option is D. D) Cost of spare part of a small car

Question 25:
A balance sheet is a financial statement that provides a snapshot of a company's assets (what it owns), liabilities (what it owes), and owner's equity at a specific point in time.
The correct option is B.
B) Balance sheet