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.

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Definitions:

Fixed-price Policy

A pricing strategy where a product or service is sold at a specific price that does not change in response to market fluctuations or customer negotiations.

No Haggle

A pricing strategy where the seller sets a fixed price for a product or service, eliminating the need for negotiation.

CarMax Dealership

A chain of used-car dealerships in the United States known for its no-haggle pricing and comprehensive vehicle inspection process.

Fixed-price Policy

A pricing strategy where a product or service is sold at a consistent price, regardless of market changes.