Which of the Following Statements Is True

question 114

Multiple Choice

Which of the following statements is true?

• A)If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger.
• B)If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances.
• C)Posting occurs when numbers in the general ledger accounts are transferred to the general journal.
• D)If the sum of the debit balances equals the sum of the credit balances, this proves that there were no mistakes made in the posting process.

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Definitions:

Flexible Budget

A budget that dynamically adjusts in correlation with variations in volume or activity levels.

Donations

Voluntary contributions of assets, including money or goods, to a person, group, or organization without expecting any return.

Standard Number

A benchmark or specific figure considered normal or expected under standard conditions in accounting and manufacturing.

Machine-Hours

An operational metric indicating the total hours a piece of machinery is utilized during a specified timeframe, frequently used for costing and efficiency calculations.