A Journal Is not Useful for

question 197

Multiple Choice

A journal is not useful for

• A)disclosing in one place the complete effect of a transaction.
• B)preparing financial statements.
• C)providing a record of transactions.
• D)locating and preventing errors.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.

Perpetual Inventory Method

An inventory accounting method where updates to the inventory records are made immediately following each sale or purchase.

Sales Returns and Allowances

A reduction in sales revenue that occurs when customers return goods or receive allowances for unsatisfactory goods, impacting the net sales figure.

Merchandise Inventory

Goods or products that a company holds for the primary purpose of selling them to customers.