Question

When should you use Add other funds to this deposit grid in a Deposit Transaction? Identify 3 correct options. (Select all that apply)(A) When an employee reimburses the company(B) You receive a tax refund from the IRS(C) You need to record an ACH payment of a customer invoice(D) When a company doesn’t record income using sales transactions (invoices or sales receipts), and wants to record deposits directly to income accounts To record the payment of a Vendor Bill

Answer 1

The 'Add other funds to this deposit grid' in Deposit Transactions is used when an employee reimburses the company, when receiving a tax refund from the IRS, and for directly recording income not through sales transactions. It is not used for recording ACH payments of customer invoices.

Step-by-step explanation:

Using the Add other funds to this deposit grid in a Deposit Transaction is necessary in several distinct scenarios within the realm of accounting and financial management. This feature allows for recording various types of transactions that are not directly related to customer payments or regular sales receipts.

• (A) When an employee reimburses the company: If an employee is returning money to the company that they had previously been given, such as for a business expense that was overpaid, this would be recorded here.
• (B) You receive a tax refund from the IRS: Tax refunds are not sales revenue, but they are funds that the company receives and needs to account for. The deposit grid is the correct place to record such transactions.
• (D) When a company doesn’t record income using sales transactions: If a business directly receives income that is not associated with an invoice or sales receipt, such as a one-time income source or a rental income, it can be recorded in the deposit grid to the appropriate income accounts.

However, option (C), recording an ACH payment of a customer invoice, does not belong in the deposit grid. Customer invoice payments are typically recorded elsewhere in the accounting system, usually through the accounts receivable module, rather than directly in a deposit transaction.

Answer 2

(A) When an employee reimburses the company

(B) You receive a tax refund from the IRS

(D) When a company doesn’t record income using sales transactions (invoices or sales receipts), and wants to record deposits directly to income accounts

Step-by-step explanation:

The three options are -

Option A is correct as the employee repays the company so that the funds to this deposit will be added to the deposit transaction.

Option B is correct as the employee or an individual will get the tax refund from the IRS which can be deposited to the deposit grid.

Option D is correct as it is recorded to income accounts directly as deposits.

Any payment cannot be added as deposit. Therefore, option C is incorrect.