Which Accounts in the General Ledger Are Affected When the Monthly

question 160

Multiple Choice

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

• A) Accounts Receivable; accounts receivable subsidiary accounts
• B) Accounts Receivable subsidiary accounts; Sales Revenue
• C) Accounts Receivable; Sales Revenue
• D) Accounts Receivable; Sales Discounts

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Definitions:

AASB 3

The Australian Accounting Standards Board standard that deals with the accounting treatment for business combinations.

Fair Value Method

An accounting strategy that assesses assets or liabilities at their current market value, rather than at historical cost or future projected value.

Proportionate Interest Method

An accounting method used to reflect a company's stake in a joint venture by recognizing only its share of assets, liabilities, income, and expenses in its financial statements.

AASB 3

Refers to the Australian Accounting Standards Board's standard on Business Combinations, outlining requirements for the accounting treatment of mergers and acquisitions.