When the Amount for a Debit Entry in a Journal

question 22

Multiple Choice

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger, it must be recorded

• A) as a debit to that account in the general ledger.
• B) as a credit to that account in the general ledger.
• C) in sum only, without any regard for debit or credit, since the general ledger accounts do not have spaces for debit and credit entries.
• D) cannot be determined without further information.

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Definitions:

Industry

A sector of the economy that includes all businesses involved in the production or processing of goods, provision of services, or related activities.

Market System

In this economic structure, supply and demand forces directly influence decisions around investment, production capacity, and distribution methods, with the price points of goods and services being freely determined in a competitive price system.

Expanding Industry

An industry or sector experiencing significant growth in terms of output, sales, or number of participants.

Resource Prices

The costs associated with acquiring raw materials or inputs used in the production of goods and services.