Amounts Are Posted Individually from the Purchases Journal to The

question 110

Multiple Choice

Amounts are posted individually from the purchases journal to the:

• A)cash account in the general ledger.
• B)inventory account in the general ledger.
• C)accounts payable account in the general ledger.
• D)accounts payable subsidiary ledger.

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Definitions:

Net Sales

The total revenue generated from goods or services sold by a company, minus returns, allowances, and discounts.

Gross Profit

The financial result obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company in managing its production and labor costs.

Operating Expenses

Expenses incurred from the normal operations of a business, excluding the cost of goods sold, such as rent, salaries, and utilities.

Sales Revenue

The income received by a company from its sales of goods or services before any costs or expenses are deducted.