Which of the Following Statements Is True

question 24

Multiple Choice

Which of the following statements is true?

• A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account.
• B) The posting of an amount recorded in the general journal can be verified by referring to the account number listed in the posting reference column on that line in the general journal.
• C) Business transactions are recorded first in the general ledger; then that information is transferred to the general journal.
• D) No explanation is needed for each entry in the general journal.

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Definitions:

Voucher System

A method of internal business control that involves a documented process for making disbursements and controlling expenditures.

Invoice Approval

The process of reviewing and verifying an invoice before it is paid to ensure that the charges are accurate and the goods or services were received.

Petty Cash Reimbursement

The process of refilling the petty cash fund to its set level after its funds have been used for small, incidental expenses.

Journal Entry

A record in accounting that represents a transaction with debits and credits documented in the appropriate accounts.