What Is the Reason for NOT Using the Journal Entry

question 3

Multiple Choice

What is the reason for NOT using the Journal Entry or Bank Deposit pages for recording sales?

• A)The sales account shows income from the Accounts Payable account.
• B)Bank deposits only reflect income from Accounts Receivable.
• C)Best practice is to record sales as a Transfer entry.
• D)A bank deposit or journal entry will not appear on sales reports.
• E)None of these.

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Definitions:

Class Action

A type of lawsuit where one of the parties is a group of people who are represented collectively by a member of that group.

Dividends

Disbursements issued by a company to its shareholders, representing a distribution of the company's earnings to its stockholders.

Corporation Treasury

The division within a corporation responsible for its financial operations, including cash management, investments, and risk management.

Shareholder Minutes

Official records of the discussions and decisions made during shareholders' meetings of a corporation.