When Recording a Business Transaction into the Journal, Certain Steps

question 15

Multiple Choice

When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.

• A)All transactions are recorded first in the general ledger and then they are journalized in the journal.
• B)An explanation is indented and entered on the line underneath the last credit in the entry.
• C)All credited accounts are listed first and then all debited accounts are indented and listed on the next lines.
• D)No dates are used in the journal.

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Definitions:

Unpaid Seller's Lien

A right granted to sellers allowing them to retain possession of property until they receive full payment, typically used in transactions involving goods.

Conditions and Warranties

Terms specified in a contract that are deemed essential (conditions) and those seen as additional promises (warranties).

Bought by Sample

Bought by Sample means purchasing goods based on a sample shown, implying that the bulk purchase should match the quality and characteristics of the sample.

Title to Bark Mulch

The legal ownership of bark mulch, indicating the rights of possession, use, and disposal of the material.