16) Petty cash payments are recorded in the accounting system when:

the petty cash fund needs to be replenished

a payment is made out of petty cash

a bank reconciliation is prepared for the petty cash fund

cash is received from returns of merchandise

21)

In a perpetual system, when inventory is sold on account:

Sales Revenue is increased and Accounts Receivable is decreased.

Sales Revenue, Cost of Goods Sold, and Accounts Receivable are increased while Inventory is decreased.

Sales Revenue and Accounts Receivable are increased, and Cost of Goods Sold and Inventory are decreased.

Sales Revenue is increased and Inventory is decreased.

22 )

Multistep income statements:

are required for merchandise companies.

contain more detail than just listing revenues and expenses.

are required when the perpetual inventory method is used.

classify Cost of Goods Sold as a selling expense.