With a Manual Accounting System,adjusting and Closing Entries

question 73

Multiple Choice

With a manual accounting system,adjusting and closing entries:

• A)are recorded in the cash payments journal.
• B)are recorded in the general journal.
• C)are not recorded when a business uses special journals.
• D)are recorded in the cash receipts journal.

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Definitions:

Liquidating Dividend

A type of payment made by a corporation to its shareholders during its liquidation or dissolution, often representing the return of capital rather than profit.

Special Dividend

A one-time payment made by a company to its shareholders, often issued in response to exceptionally strong earnings or when a large amount of excess cash is on hand.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company remains the same.