Which of These Statements Is Not True

question 27

Multiple Choice

Which of these statements is not true?

• A)Transactions must be recorded in a journal.
• B)All transactions could be recorded in the general journal.
• C)Companies use a number of special journals to record most transactions.
• D)Special journals are designed to improve record- keeping efficiency.
• E)The form of the journals are the same from industry to industry.

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Definitions:

ROE

Return On Equity; a measure of a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Debt

An amount of money borrowed by one party from another, often used by companies and governments to finance projects and operations.

Risk

The potential for losing something of value, often used in the context of investments where there is a possibility of financial loss.

Variable Cost Ratio

The proportion of variable costs to sales revenue, indicating how much variable cost changes with a change in the company's production volume.