Which of the Following Is Not a True Statement About

question 31

Multiple Choice

Which of the following is not a true statement about the daily posting of the sales journal?

• A) There is a debit posting to accounts in the accounts receivable subsidiary ledger.
• B) There is no credit posting.
• C) The reference column in the sales journal is checked when the posting is complete for each entry in the journal.
• D) The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger.

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Definitions:

Capacity

The legal capability to understand the terms of a contract and to be held accountable for its obligations, or the maximum output or production ability of a facility.

Agency Relationship

A fiduciary relationship where one party (the agent) acts on behalf of another (the principal) in dealing with third parties.

Elect to Sue

The decision taken by an individual or entity to initiate legal proceedings against another party.

Identity Discovered

The process or instance of confirming or revealing the true identity of an individual or entity.