Entries in the Purchases Journal Are Posted to The

question 65

Multiple Choice

Entries in the purchases journal are posted to the:

• A)general ledger only.
• B)general ledger and the accounts payable subsidiary ledger.
• C)accounts payable subsidiary ledger and the purchases ledger.
• D)accounts payable subsidiary ledger only.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and profit generation.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core operations.