Entries in a Sales Journal

question 5

Multiple Choice

Entries in a sales journal

• A) are made from sales invoices.
• B) will indicate the invoice number in the reference column of the sales journal.
• C) will occupy two lines of the sales journal.
• D) indicate either a cash debit or accounts receivable debit.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Profit-maximizing Output

The production level where maximum profit is achieved by a company, when the marginal cost matches the marginal revenue.

Fixed Cost

Costs that do not vary with the level of output or production in the short term, such as rent, salaries, and insurance premiums.

Lawn-mowing

The process of cutting grass to a uniform length, typically performed as a maintenance activity for aesthetic and health reasons in gardens and lawns.