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

You're on a roll — 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 Got more? Send 'em!