Posting a Sales Journal to the Accounts in the General

question 214

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 and a credit to Inventory.
• C) debit to Accounts Receivable and a credit to Cost of Goods Sold.
• D) debit to Accounts Receivable and a credit to Sales Revenue.

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Definitions:

Utility Function

It is an economic model representing the preference level of consumers for different combinations of goods and services.

Income

A measure of the flow of funds from various sources, such as wages, investments, or business activities, that an individual or entity receives over a period of time.

Consumption

The act of using goods and services to satisfy needs and wants.

Utility Function

A mathematical representation of how a consumer's satisfaction or happiness is affected by consuming different quantities of goods and services.