A Checkmark in the PR Column in the General Journal

question 93

Multiple Choice

A checkmark in the PR column in the general journal means:

• A)the entry was recorded correctly.
• B)the amount was posted to the controlling account.
• C)the amount was recorded in the subsidiary ledger.
• D)the customer paid in the discount period.

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Definitions:

Fair-value Hedge

A strategy used in accounting to mitigate the risk of changes in the fair value of an asset, liability, or firm commitment through derivative contracts.

Cash-flow Hedge

A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with an asset or liability or a forecasted transaction.

Purchase Order

An official document issued by a buyer committing to pay the seller for the sale of specific products or services.

Fair-value Hedge

A hedge of the exposure to changes in the fair value of an asset or liability or an unidentified firm commitment that could affect profit or loss.