The Relationship Between the Rent Item and Return Item Events

question 67

Multiple Choice

The relationship between the Rent Item and Return Item events is most likely 1:1 for all except which of the following reasons?

• A)A return must be for a rented item.
• B)A rented item can only be returned once.
• C)Rented items are accounted for separately.
• D)All rented items must be returned.

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Definitions:

Special Journals

Special journals are accounting journals designed for recording specific types of transactions in a detailed manner, such as sales or purchases, to streamline the accounting process.

General Journal

A basic accounting ledger where all types of transactions are initially recorded, using a double-entry bookkeeping system, before being posted to specific accounts in the general ledger.

Sales Journal

A specialized accounting journal used to record all sales of merchandise on credit.

Accrual Basis

A financial recording technique that documents incomes and expenses as they are incurred or earned, without taking into account the timing of cash transactions.