Can you help with this basic accounting packet?... please explain answers if possible?

Question

True or False:

1. Operating expenses of a business are usually grouped into two categories: selling expenses and adminstrative expenses

2. System analysis is the final phase in the creation or revision of an accounting system

3. A payment system that uses computerized electronic impulses to effect a cash transaction is called electronic funds transfer (EFT)

4. A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account

5. When the petty cash fund is replenished, the petty cash account is credited for the total of all expenditures made since the fund was last replenished

6. Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables

7. The difference between Accounts Receivable and its contra asset account is called net realizable value

8. The gross profit method is a method of estimating the cost of inventory

Thanks!!

Answer 1

I believe all of the answers are TRUE.

Answer 2

yes , it is true all business expenses are put into two categories, this is because you have to count what's going out, compared to what's coming in. This is call your asset and liabilities. Every business must know this answer in order to succeed. Now on the other hand a company using the EFT method , will always show the net profits before it 's deduction. This is because of the undetermined amount that can't be accounted for. The business must make money in order to be successful, so a fee is recommended to pay for unforeseeable payments.