Question

Which of the following is false?

1) Checks and deposit slips are the main source of documents backing up the bank statement
2) Retailers use cash register receipts to recognize sales
3) Stock certificates are evidence of being a creditor of the company
4) Time cards are used as a source of information to record wages

Answer 1

The false statement is that stock certificates are evidence of being a creditor of a company; they actually signify ownership. Checks and deposit slips back up bank statements, retailers use cash register receipts for sales, and time cards track wages.

Step-by-step explanation:

The statement that is false among the provided options is that 'Stock certificates are evidence of being a creditor of the company.'

Stock certificates represent ownership in a company, not a credit relationship. When someone owns stock, they are a shareholder, which means they own a portion of the company. Shareholders have equity in the company, whereas creditors are owed a debt by the company. In contrast, documents such as bonds or promissory notes would represent a creditor relationship.

Other statements are true: Checks and deposit slips are indeed the primary documents that back up a bank statement. Retailers do use cash register receipts to recognize sales and provide proof of purchase for customers. Time cards are commonly used by employers to track the hours worked by employees and calculate wages.