When the Totals of the Sales Journal Are Posted at the End

question 1

Multiple Choice

When the totals of the sales journal are posted at the end of the month, there will be credits to

• A) Sales and Merchandise Inventory and debits to Accounts Receivable and Cost of Goods Sold.
• B) Accounts Receivable and Cost of Goods Sold and debits to Sales and Merchandise Inventory.
• C) Sales and debits to each individual customer account.
• D) the Sales account only, and no debits.

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Definitions:

Aggregate Demand

Aggregate demand represents the total demand for goods and services within an economy at a given overall price level and in a given time period.

Future Generations

Individuals or populations that will exist in the future, beyond the current members of society, whose interests are considered in long-term policy making.

Budget Deficit

A shortfall of tax revenue from government spending

Balanced Budget

A financial statement or plan where total revenues are equal to or greater than total expenses, resulting in no deficit.