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:

Equity Transaction

Transactions that affect the ownership interest of shareholders in a company, including issues, buybacks, and sale of shares.

Incremental Costs

Costs directly associated with the production of additional units of goods or services.

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.

Contingent Asset

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.