Which of the Following Statements Is NOT Correct Regarding the Cash

question 10

Multiple Choice

Which of the following statements is NOT correct regarding the cash receipts journal?

• A) After posting a column total from the cash receipts journal to a general ledger account,a (√)is entered at the bottom of the journal column.
• B) The amounts that appear in the Other Accounts Credit column are posted individually to the general ledger accounts during the month.
• C) Before any posting to the general ledger takes place,the equality of the debits and credits recorded in the cash receipts journal are proved.
• D) The amounts recorded in the Accounts Receivable Credit column are posted daily to individual accounts in the accounts receivable subsidiary ledger.

---

Definitions:

Market Value

The prevailing price for an asset or service that is available for transaction in an open marketplace.

Flotation Costs

The costs associated with issuing new stocks or bonds, including underwriting fees, legal fees, and registration fees.

Pre-Tax Cost

The cost of an investment or loan without taking taxes into account.

Debt-Equity Ratio

A metric reflecting how company assets are proportionally financed by shareholders' equity and debt.