Posting a Sales Journal to the Accounts in the General

question 39

Multiple Choice

Posting a sales journal to the accounts in the general ledger requires a

• A) debit to Cash and a credit to Sales Revenue.
• B) debit to Sales Revenue and a credit to Inventory.
• C) debit to Accounts Receivable and a credit to Inventory.
• D) debit to Accounts Receivable and a credit to Sales Revenue.

---

Definitions:

Compound Interest

The process of computing interest by including both the primary sum borrowed or deposited and the interest that has previously accumulated over time.

Estimated Cost

A prediction or approximation of the cost of goods or services, based on current and past information, before the actual expense is known.

Net Present Value

A method used in capital budgeting to determine the profitability of an investment by calculating the sum of its present values of all expected future cash flows.

Present Value Index

A financial metric used to evaluate the present value of future cash flows in relation to the initial investment, also known as the profitability index.